The post Here’s why Russia’s investigating committee seeks regulating Bitcoin as property appeared on BitcoinEthereumNews.com.

Russia’s main federal investigating authority is proposing new legislation for Bitcoin that could potentially criminalize its transfer through third parties. Russia’s Investigative Committee has put forward a proposal that could potentially affect the country’s cryptocurrency market. In early February, the agency’s Chairman Alexander Bastrykin announced during an extended board meeting that the committee had proposed to legally recognize cryptocurrency as property, Russian news outlet Interfax reports. He also suggested criminal liability for transferring electronic payment instruments to third parties. Russian legal experts interviewed by crypto.news divided on whether cryptocurrency falls under this term. But one thing is clear: if approved, the changes would lay out clear rules on how cryptocurrency can be seized or confiscated during investigations. Droppers As of press time, Russian law doesn’t have a standardized way how to handle cryptocurrency in criminal cases. However, that could change soon. The proposed amendments would officially classify crypto as property, allowing authorities to treat it as evidence. New rules would also set guidelines for freezing and confiscating cryptocurrencies. One key issue the committee is addressing in its call is the illegal use of third-party bank accounts — often referred to as “droppers” — to facilitate cryptocurrency transactions. This is why authorities suggest criminal liability. According to Russia’s law, electronic payment instruments refer to methods that allow individuals to manage and transfer funds through electronic systems, such as banking cards or digital wallets. But when it comes to cryptocurrency, law enforcement faces technical challenges in identifying and tracking illicit transactions. Vladimir Sobinsky, a legal expert at the law firm DRC, which represented Binance in 2020, explained in a commentary to crypto.news that the issue is how crypto is bought in Russia. Many crypto newbies rely on peer-to-peer services of centralized crypto exchanges, he says. There, they essentially “buy access” to someone…

---

Filed under: News - @ February 8, 2025 8:25 am