Russian Civic Chamber Proposes Dedicated Fund for Seized Crypto Assets
Russia’s Civic Chamber has proposed establishing a dedicated government fund to manage cryptocurrency assets confiscated during criminal proceedings. Evgeny Masharov, a member of the Civic Chamber, suggested that the fund could generate revenue for social, environmental, and educational projects.
Crypto Fund to Benefit Social Projects
Masharov emphasized that cryptocurrencies seized from criminal activities should directly benefit the state. He proposed creating a special fund to hold these assets, noting their potential to significantly increase in value over time.
“The proceeds from the cryptocurrency fund can then be used for social, environmental, and educational projects,” Masharov stated, according to a report by Russian news agency TASS.
Legislative Progress on Crypto Confiscation
This proposal aligns with ongoing legislative efforts in Russia to formally recognize cryptocurrencies as property within criminal procedure laws. Alexander Bastrykin, Chairman of Russia’s Investigative Committee, confirmed that a related draft bill has already been submitted to the government for review.
Russia’s History of Crypto Seizures
Russian authorities have been confiscating cryptocurrency assets linked to criminal activities for several years. However, the country currently lacks clear guidelines on managing and distributing these seized assets.
- Russian prosecutors have sought legal frameworks for crypto confiscation since at least 2021.
- Millions of dollars in crypto have already been seized in various criminal cases.
- No standardized procedures currently exist for handling these assets.
Central Bank Opposition to Crypto Investments
Despite the Civic Chamber’s proposal, Russia’s central bank governor, Elvira Nabiullina, has previously expressed strong opposition to cryptocurrency investments by the Bank of Russia. Nabiullina argued that crypto assets are too volatile and unsuitable for preserving value.
Comparison with US Bitcoin Reserve
The proposed Russian crypto fund resembles initiatives like the United States’ Strategic Bitcoin Reserve, which specifically holds confiscated Bitcoin assets. However, Russia’s central bank remains skeptical about adopting similar strategies.
Quick Summary
- Russian Civic Chamber proposes a dedicated fund for seized crypto assets.
- Funds would support social, environmental, and educational initiatives.
- Proposal aligns with ongoing legislative efforts to recognize crypto as property.
- Central Bank governor opposes crypto investments due to volatility.
