With so much going on around cryptocurrencies, it looks like Russia is not taking any chances. As a result, they are working very hard to make sure that their country is safe from any cryptocurrency-related threats.
Reports have it that the country’s financial regulators are moving to seek a way of coming up with a legal framework that will allow Russian security agencies to seize any cryptocurrencies used for any illicit activities.
According to close sources, the Ministry of Internal Affairs in Russia is trying to work and collaborate with several other security agencies in the country to amend their existing legal framework, hence making it possible to confiscate all cryptocurrencies that are involved in illegal operations by no later than December 31, 2021.
The Regulation of Cryptocurrencies
Based on a report released by RBC Group, there will be a few parties that will take part in drafting the regulation. They include the Prosecutor General’s Office, the Federal Customs Service, the Investigative Committee, the FSB (Federal Security Services), and the Justice Ministry. This is being done to ensure sure that every part is taken care of and monitored correctly.
According to the report, the head of the Russian parliament select committee, Nikita Kulikov, was quoted saying the following, “The constant growth trend in crimes using virtual assets, and the lack of consumer protection in the face of this kind of criminal onslaught, naturally dictate the need to develop mechanisms for legal regulation and control of virtual asset exchange.”
The report released by RBC Media stated that specific cryptocurrencies, in particular Bitcoin (BTC), have been used for several years in cybercrime as well as for terrorist financing, money laundering, and many other illegal dealings. Yahoo Finance confirmed that the relevant Russian authorities are taking the necessary steps to fight cybercrime.
It is reiterated that this move can only work if cryptos will be fully regulated within the country and offered as a commodity or legal tender, hence enabling the security agencies to easily get backing from the law to effectively confiscate any digital currencies.
Overcoming the Roadblocks
According to the involved officials, it is evident that it will be a difficult job to confiscate cryptocurrencies from investors since they hold them in crypto wallets, which would require the concerned investor’s keys in order to access them.
Nevertheless, it is the belief of the regulators that this matter could be much simpler if the tokens were stored in exchanges that operate within the country’s jurisdiction. This in turn would also make it easier to request for the funds to be blocked by the exchange on any fraudulent account.
Interestingly, the report mentioned that the relevant Russian authorities are fully aware that any crypto exchange in operation outside the Russian jurisdiction could ignore the above requests.
A top official within the Russian Ministry of Finance also confirmed that the necessary requirements and plans are currently underway which would enable the regulation of cryptocurrencies within the country based on three categories. These categories include Virtual Assets, Technical Tokens, and Digital Financial Assets. What is left is to be seen is just how much progress the country will have made before the stipulated time of the end of 2021.