Russia’s Supreme Court is pushing to classify cryptocurrency as property in penal cases, aiming to strengthen law enforcement’s ability to track, freeze, and confiscate illicit digital assets.
Russia’s Supreme Court Advances Crypto Legalization Efforts
Russia’s Supreme Court has taken an increasingly active role in defining the legal status of cryptocurrency, with its latest efforts focusing on recognizing digital assets as property for penal proceedings, Tass reported on Feb. 20. Chairperson Irina Podnosova addressed the issue at a recent meeting attended by judges and Russian President Vladimir Putin, stating:
With the spread of cryptocurrency in the economy, there has been a rise in crimes where the digital currency is either the means of committing the crime, the criminal income, or the object of the offense.
She further confirmed that the Supreme Court is involved in drafting a “legislative initiative aimed at recognizing digital currency as property for purposes of penal proceedings,” a move that could strengthen law enforcement’s ability to handle crypto-related crimes.
This is not the first time Russia’s Supreme Court has addressed cryptocurrency in legal proceedings. In 2019, it ruled that converting bitcoin into rubles constituted money laundering when the digital currency was obtained through illegal activities, particularly in cases involving drug-related transactions. The court’s decision reinforced that cryptocurrencies could fall under existing anti-money laundering laws. Additionally, in 2021, the court ruled that WMZ, the electronic currency used in the Webmoney Transfer system, was legally recognized as an object of civil rights, setting a precedent for the legal treatment of digital assets in Russia. These earlier rulings indicate the Supreme Court’s ongoing efforts to integrate cryptocurrency into the country’s judicial framework.
Despite stable crime patterns in Russia, where property crimes account for 38%, violent crimes for 24%, and offenses against public security and order for 24%, the growing use of digital currency in criminal activities has prompted efforts for clearer legal definitions, according to Podnosova.
By officially classifying cryptocurrency as property, authorities will be better positioned to track, freeze, and confiscate illicit digital assets. As more countries seek to regulate the crypto space, Russia’s legislative efforts highlight the increasing necessity for legal clarity in digital finance.
