Wednesday, November 30

Russia prepares law to confiscate cryptocurrencies

Russia has always been a country that has had a complicated relationship with the cryptomarket, between bans and regulatory threats the situation there remains difficult, with the Attorney General of the Russian Federation, Igor Krasnov, drafting regulations that will allow for the confiscation of cryptocurrencies in the future.

The regulation of the cryptocurrency market is necessary to protect its participants and the state, the Duma deputy told the Daily Moscow newspaper.

As shown by local news, the Russian Attorney General and the team of experts are preparing amendments to regulatory documents to create a legal framework for the possibility of confiscating and detaining digital coins.

With current regulations, cryptocurrencies in the country are now recognized as property, but for the Attorney General this is not enough. So they are working out a clearer definition of virtual assets to be introduced and possibly approved.

cryptocurrency confiscation

Interestingly, one of the biggest concerns of the team developing the regulatory changes is not cybercrime such as hacker attacks or extortion, but energy theft by illegal miners, something that is becoming a major problem in the region.

“Previously, Rosseti Severny Kavkaz submitted a request to the Ministry of Energy of the Russian Federation to reduce the amount of property damage, and determine when there is criminal responsibility for theft of electricity. This is necessary for a more effective fight against illegal Bitcoin (BTC) and other cryptocurrency miners.”

With these changes, the Attorney General’s intention is to be able to confiscate Bitcoins and cryptocurrencies from this type of activity to generate disincentive on the part of criminals who steal energy for illegal mining.

At the same time, the country is also concerned about the legislative regulation of the cryptomarket as a whole, with the Duma deputy, Alexei Kanaev asserting that legislative regulation is necessary to protect all industry players and the state alike.

“Of course this is a market, and the market is no longer in quotes, it is a market where trillions of dollars circulate on a global scale and which involves an increasing number of people. Someone tries to make money from it and wins, while someone invests money and sometimes loses everything.” said Kanaev to NEWS MOSCOW.

Kanaev stated that this is a very difficult task and that it will be necessary to create a special group to work on the discussion and debate for these regulations, with the help of experts. However, this is necessary after all for him “it is clear that the market needs to be regulated”.