Following the footsteps of the US administration, Russia, too, is planning to turn criminals’ Bitcoin (BTC) funds into state revenue.
Russian bailiffs have developed new methods to convert seized Bitcoin into cash for the government. Dmitry Aristov, head of Russia’s Federal Bailiff Service (FSSP), described Bitcoin as a “problematic asset” in a video posted by the Federation Council.
Aristov explained that the FSSP, working with other agencies, is building mechanisms to turn Bitcoin into state revenue. Aristov mentioned a legal precedent from a past criminal case that allows them to seize Bitcoin and other cryptocurrencies.
However, he stressed that lawmakers must pass legislation to clarify Bitcoin’s legal status in Russia, as a comprehensive solution for confiscating crypto assets has not been finalized yet.
Note that Russia has already made some considerable progress with cryptocurrency regulations, for instance, legalizing crypto mining and allowing crypto use in international trade within a Central Bank-run sandbox. Still, many policymakers believe more needs to be done, especially when it comes to the use of crypto within Russia itself.
Aristov’s statements may be a reference to the 2024 case of Marat Tambiev, a former investigator who was convicted of accepting Bitcoin bribes. The confiscated Bitcoin, which is worth around $10 million, is currently being moved to the Russian Treasury, with plans to sell them off. The government is also working on a bill that would recognize crypto as property for criminal procedures and may create a state fund for confiscated crypto assets.
This move comes hot on the heels of Russia’s initial cynicism toward incorporating crypto assets into its National Welfare Fund (NWF). Russia’s Deputy Finance Minister, Vladimir Kolychev, had recently shared that the country’s crypto assets remain too volatile and that the current level of savings in the NWF does not justify risky investments.