Russia Signs Bill to Confiscate Crypto Assets Linked to Crime, Sets Sights on Telegram Founder

▲ Russia, Bitcoin (BTC)

Russia has significantly strengthened legal control over virtual assets by enacting a new law that allows authorities to confiscate Bitcoin (BTC) involved in criminal activities, heightening tensions in the global crypto market.

According to crypto-focused outlet CoinGape on February 25 (local time), Russian President Vladimir Putin signed into law a bill permitting investigative authorities and courts to seize or confiscate virtual assets such as Bitcoin. The legislation amends the Criminal Code and the Criminal Procedure Code to classify virtual assets as intangible property and requires police or prosecutors requesting confiscation to specify the type and quantity of the virtual assets as well as the wallet addresses involved. Deputy Justice Minister Elena Ardabyeva stated, “This bill will formalize existing practices for seizing virtual assets and provide a legal basis for cooperation with foreign exchanges.”

Russia’s move coincides with efforts to block its citizens’ access to overseas crypto exchanges. Experts predict that the Russian government may fully prohibit the use of foreign exchanges by its citizens within this year, citing statistics showing that Russians spend approximately $650 million daily on crypto trading. Authorities have openly signaled their intention to strengthen market control by encouraging the use of platforms with a physical presence inside the country.

At the same time, judicial pressure on Telegram founder Pavel Durov is intensifying. Russian authorities have launched a criminal case against Durov on charges of supporting terrorism, a move that could potentially lead to the blocking of the Telegram service itself. Durov criticized the action via X (formerly Twitter), saying, “The state is fabricating the pretext of supporting terrorism to suppress privacy and freedom of expression,” adding that it reflects “the sad reality of a state that fears its own citizens.”

Western pressure to prevent virtual assets from being used to evade international sanctions is also increasing. The United States and the European Union are pushing measures to completely ban crypto transactions with Russian entities, while blockchain analytics firms such as Elliptic have released reports indicating that certain exchanges are being used as tools for sanctions evasion. Russia plans to introduce new regulatory legislation by July 1, modeled after Belarus, that would restrict unlicensed foreign platforms.

Russia’s strong control over virtual assets is expected to have significant repercussions for the global regulatory environment. In the United States, political debate over the stablecoin regulatory bill known as the CLARITY Act has intensified, raising concerns that regulatory leadership could be ceded to Russia. According to Polymarket data, the probability of the bill’s passage has fallen to 48%, reflecting continued political uncertainty.

*Disclaimer: This article is provided for investment reference purposes only, and we are not responsible for any investment losses incurred based on this content. The information herein should be interpreted solely for informational purposes.*