Russian Lawmaker General Igor Krasnov is concerned about the use of criminal activity in cryptocurrency. Now he has revealed some new details about his plan for crypto legislation in Russia.
In a recent press conference, Krasnov said:
“A serious challenge is the criminal use of cryptocurrencies in our country. A significant step in overcoming this problem was the adoption in July 2020 of the federal law. Currently, work is underway to amend the criminal and criminal procedural legislation. This will allow the application of restrictive measures and confiscation of virtual assets.”
So, will this this effect normal, everyday crypto investors in Russia?
Cryptocurrency in Russia and potential future for crypto legislation
Russia’s legal framework for Bitcoin and cryptocurrency is very early. It was only in 2020 where a tax law was instituted for those earning profits from crypto investments. Also, Russia’s financial surveillance body, Rosfinmonitoring, was developing a classification code for what they deem suspect transactions.
In June it was reported that President Biden met with Vladimir Putin toI discuss ways the United States and Russia could work together to combat ransomware. Many were expecting the two leaders to mention cryptocurrency during this meeting, however, it was not mentioned. And Putin has still not commented much on crypto and Bitcoin. But Russian Lawmaker Krasnov has. In the same conference, Krasnov specifically warned about the use of digital assets in cyber crimes. He said:
“Obviously, the problem of criminal use of virtual assets, digital money, and other modern technologies, including artificial intelligence, will soon only grow. It is even more important to draw up additional effective responsible measures against these threats.”
Some were questioning if the ransomware narrative would extend to Russia. Here Krasnov has adopted the narrative and extended it to other areas of technology such as artificial intelligence. So, the question remains. Will Russia and other governments be able to confiscate crypto? Industry experts weigh in.
The experts say it’s not possible
Nikita Soshnikov, director of Alfacash, spoke with Cointelegraph in regards to this issue. He said:
“Obvious that digital assets kept in wallets would be impossible to confiscate like any other type of assets. However, there is already one landmark case where FSB officers were found guilty for accepting bribes, and the court formally seized 0.1 and 4.70235 BTC as state revenue.”
So, governments do not have the technological authority to seize crypto assets. However, it’s possible through law they could coerce an individual to fork over their crypto assets through threats of incarceration.
If you enjoyed this article, you might also want to read: President Biden wants to work with Russia to end ransomware.