YEREVAN (CoinChapter.com) — Evgeny Masharov, a member of the Russian Civic Chamber, has proposed the creation of a government-controlled cryptocurrency fund to manage confiscated digital assets. The initiative aims to direct seized crypto toward state-backed projects, according to a March 20 report by TASS.
Masharov stated that proceeds from the crypto fund could be used for social, environmental, and educational programs. He added that cryptocurrencies obtained from criminal cases should serve state interests.
Russian lawmakers are discussing new legislation to classify cryptocurrency as property in criminal proceedings. The proposal aligns with ongoing efforts to define how digital assets should be handled after confiscation.
Seized Crypto Should Serve the Government
Russian officials are working on laws to regulate crypto confiscation. Alexander Bastrykin, Chairman of Russia’s Investigative Committee, confirmed that a draft bill on the issue has been submitted to the government for review, according to a March 19 report by RBC.
Masharov supported the proposal, stating,
“Cryptocurrencies confiscated as part of criminal proceedings must work for the benefit of the state.”
He suggested creating a special government fund to manage these assets and keep them within the state’s financial structure.
He also noted that some seized crypto assets may increase in value, potentially raising government revenue over time. However, there is currently no official framework that dictates how these assets should be handled.
Russia Lacks a Clear Policy on Crypto Seizures
Authorities in Russia have been confiscating cryptocurrency linked to criminal activity for years. However, the country does not have a clear legal process to manage these assets after seizure. Since 2021, prosecutors have pushed for laws allowing the government to legally claim and allocate confiscated crypto.
Moreover, despite the lack of a formal regulatory framework, law enforcement agencies have already seized millions in cryptocurrency from criminal cases. Some cases involved corrupt officials accused of misusing digital assets.
Bank of Russia Rejects Crypto Investments
While discussions on a state-controlled crypto fund continue, the Bank of Russia remains against cryptocurrency investments. Elvira Nabiullina, Governor of the Bank of Russia, has consistently opposed crypto assets, citing their volatility.
“Cryptocurrency investment doesn’t make any sense for the Central Bank in terms of preserving value since it’s a very volatile asset,” she said in December 2024.
Notably, although the central bank has maintained restrictions on digital assets, Russia is actively exploring crypto-related strategies for international trade. This includes Bitcoin (BTC) and USDT for use in transactions with China and India.