Since the creation of the first cryptocurrency (Bitcoin) in 2008 with the first domain bitcoin.org registered, many fears, doubts, and reservations have been linked with the newborn currency.
That all makes sense from a human’s perspective, considering our trusting instincts and nature. When Bitcoin was first introduced to the world, it didn’t receive any noticeable acceptance. However, by 2017 Bitcoin was trading at $1000 at the beginning of the year.
As per recent developments, Russia is planning to regulate and enforce new legal amendments to control the use of cryptocurrencies. According to Igor Krasnov – Russian prosecutor general, such crypto regulations are very significant. They are important to battle the threat of corruption because it is very likely for digital assets to be used in facilitating crime. As per a senior official, this legislation will also allow the government to seize crypto assets of individuals or groups.
As per local news source TASS, once government develops necessary amendments in Russia’s criminal code, it will allow law enforcement to confiscate any crypto assets made by performing illegal activities.
The Russian Prosecutor General was attending a conference of European prosecutor’s offices recently. He stated that there has been a huge increase in using digital currencies like BTC (Bitcoin) for bribery and corruption. As per him, “using cryptocurrencies for crimes shows a huge challenge in Russia.”
He also stated that although their Crypto law on Digital Financial Assets (DFA) has played a critical role in combating this problem. However, the new amendments are going to provide an additional layer of security.
On the other hand, local industry experts also commented that regardless of the amount of legislation from the government, they can’t confiscate virtual assets. A former senior lawyer at Deloitte CIS named Nikita Soshnikov, who is also Alfacash’s director, commented on the situation.
Nikita Soshnikov said, “Unlike other types of assets, it is very obvious that any crypto assets in wallets cannot be confiscated. Although there’s one instance where the court had confiscated 4.70235 Bitcoins as state revenue, due to Russian FSB officers found guilty of taking Bribes.”
He further added that the office of the Prosecutor General is a major stakeholder of this project. Therefore, this statement in such context is a mere confirmation of the agreed-upon plans.
FSB is the Federal Security Service of Russia or Federalnaya Sluzhba Bezopasnosti.
Also, last year in Mar, we saw that Russia renewed its anti-bribery and AML regulations to support its growing digital economy. Russian Supreme court also made it clear at the end of 2019 that ‘digital rights’ can be used to facilitate crimes. The crime brings under control include bribery in a similar way as property, any other valuable assets, and fiat currency. The term “Digital Rights” is used to mean cryptocurrencies in Russian Law.