Russia Moves to Classify Crypto as Property in Criminal Cases

Russia is tightening its grip on cryptocurrency regulation, with the Supreme Court preparing to classify digital assets as property in criminal cases.

The move is part of a broader effort to curb illegal financial activities involving crypto, which have become increasingly difficult to monitor and prosecute.

Criminals have long exploited the legal gray area surrounding digital assets to launder money and evade detection. Supreme Court Chairperson Irina Podnosova recently underscored the urgency of addressing these gaps, citing a rise in crypto-related offenses. A new legislative proposal aims to bring digital currencies under stricter legal oversight, making it easier for authorities to track, freeze, and seize illicit funds.

Under the proposed changes, law enforcement would gain more authority to pursue cases involving cryptocurrency. Unlike traditional financial crimes, where physical assets can be confiscated, crypto transactions often go unpunished due to a lack of clear legal classification. By defining digital currencies as property, authorities hope to dismantle the infrastructure that allows criminals to operate with impunity.

This effort builds on previous Russian court rulings. In 2019, Bitcoin-to-ruble exchanges linked to criminal activity were equated with money laundering. A later decision in 2021 recognized WebMoney’s digital currency as a legal financial asset. Now, the Supreme Court is pushing for even tighter regulation, reinforcing the state’s control over the crypto economy.

Although crime rates in Russia have remained steady, digital assets are playing a growing role in illegal transactions. Property crimes remain widespread, and the lack of clear crypto regulations has made it easier for bad actors to exploit the system. Authorities see this new legal framework as a necessary step in preventing further abuse and strengthening financial oversight.

Alexander Zdravkov