Members of the Russian parliament have passed provisions allowing the state to treat cryptocurrency as property as part of criminal proceedings.
The new legislation unties the hands of law enforcement and judicial authorities in a growing number of cases requiring the seizure of digital assets.
Russian lawmakers adopt law regulating crypto seizure
The State Duma, the lower house of the Russian legislature, approved a law introducing a procedure for seizing and confiscating cryptocurrency in crime-related cases.
The legislation, which amends the country’s Criminal Code and Criminal Procedural Code, recognizes digital currencies like Bitcoin (BTC) as property.
On Tuesday, members of the chamber passed the federal Law on its third and final reading, the Interfax news agency and the business news outlet RBC reported.
It regulates the actions of investigators as well as the methods employed to conduct the seizure of such assets, allowing them to either establish control over physical devices like servers, computers, and hardware wallets or transfer the coins to dedicated safe addresses, if possible.
The document establishes a mechanism for seizing cryptocurrency for the purpose of subsequent confiscation or to secure a civil claim, the reports noted.
The protocol for each crypto seizure must specify the type of currency, its amount, and the respective addresses. Access information and storage media must be kept sealed.
The bill was first submitted to the Duma in the spring of last year. It’s expected to be approved by the Federation Council, the upper house of parliament, and enter into force 10 days after its publication.
The executive power in Moscow will then introduce the necessary bylaws governing the storage and transfer of seized crypto funds.
Crypto confiscation gets regulated before other operations
Russia is yet to properly regulate the full spectrum of crypto-related transactions in its jurisdiction. According to officials in Moscow, this is going to happen by July 1, at the latest.
Upcoming legislation will be based on a new regulatory concept unveiled by the Central Bank of Russia (CBR) in late December 2025, as reported by Cryptopolitan.
The document envisages recognizing cryptocurrencies and stablecoins also as “monetary assets,” widening investor access and legalizing trading on licensed exchanges.
The rules for coin seizure come after Russia’s Constitutional Court upheld the rights of cryptocurrency owners, including to judicial protection.
The review was prompted by the case of a Russian citizen who sought the return of 1,000 USDT he had temporarily transferred to an acquaintance. Lower courts had rejected his claim based on his failure to inform the Federal Tax Service (FNS) about his holdings.
There have been a few similar precedents in the country. In January, local media revealed that the office of the Federal Bailiff Service in the Krasnodar Krai region had seized the digital assets of a man who failed to pay child support to his ex-wife.
Other cases have been only partially resolved. A Russian court recently ordered the seizure of the property of a former employee of the interior ministry convicted of accepting a 5 billion-ruble bribe in cryptocurrency. It remained unclear whether his digital holdings were actually arrested.
Deputy Justice Minister Elena Ardabyeva was quoted as stating earlier that the new law consolidates the existing practice of seizing digital assets during investigations, both from cold and hot wallets. Russian authorities plan to also rely on the cooperation of foreign exchanges for such measures.
Law enforcement and judicial officials will also be able to request quotes for the market value of cryptocurrency holdings and seize other assets within that total to cover financial losses inflicted by persons and entities.