Russia’s Supreme Court is taking significant steps to classify cryptocurrency as property in penal cases, a move aimed at enhancing law enforcement’s ability to track, freeze, and confiscate illicit digital assets. This initiative marks another step in Russia’s ongoing efforts to integrate cryptocurrency into its legal framework.

Crypto’s Role in Criminal Cases

Chairperson Irina Podnosova addressed the matter in a recent meeting with judges and Russian President Vladimir Putin. She highlighted how the increasing use of cryptocurrency in the economy has led to a rise in crimes where digital assets are either the means, the proceeds, or the object of the offense.

Recognizing this trend, the Supreme Court is working on a “legislative initiative” to legally classify cryptocurrency as property for penal proceedings. This classification would allow authorities to take stronger actions against crypto-related crimes, ensuring that illegal digital assets are properly handled under existing legal structures.

Previous Crypto Rulings in Russia

This is not Russia’s first attempt to regulate cryptocurrency in legal proceedings. In 2019, the Supreme Court ruled that converting bitcoin into rubles constituted money laundering when the digital assets were obtained illegally, particularly in drug-related cases.

Further reinforcing its stance, the court ruled in 2021 that WMZ, the electronic currency used in the WebMoney Transfer system, was legally recognized as an object of civil rights. This set a precedent for defining digital assets under Russian law.

Addressing Crypto Crimes Amid Stable Crime Rates

Despite Russia’s stable crime patterns—where property crimes account for 38%, violent crimes for 24%, and offenses against public security for 24%—the Supreme Court sees the growing use of digital assets in illegal activities as a pressing concern.

By classifying cryptocurrency as property, Russian authorities will have greater legal clarity in tackling cybercrime, tracking funds, and seizing illicit crypto assets.

Global Trend Towards Crypto Regulation

Russia’s move aligns with a global push for clearer crypto regulations. As digital finance expands, countries worldwide are working to establish robust legal frameworks for handling cryptocurrency-related crimes. Russia’s Supreme Court’s initiative is a clear signal that the country is tightening its grip on digital assets to ensure a more secure financial ecosystem.