Russia is preparing a new set of rules that would define when the country’s law enforcement authorities can confiscate digital currencies, with the aim of strengthening the powers of regulators there.

According to reports in Russian news agency TASS, prosecutors prepare to apply powers that could allow them to take control of digital currency allegedly obtained illegally or in connection with crime, in a bid to stem the rising tide ill-gotten digital currency gains in the country.

At a conference in St. Petersburg, Attorney General Igor Krasnov said that the use of digital currency by criminal elements in Russia was a significant problem for law enforcement and the authorities needed to more powers to deal with those who used digital currency illegally.

Russia passed its first legislation regulating digital assets last year. Now, the new measures are expected to result in an overhaul of the country’s criminal and penal codes, which will give law enforcement the power to “apply restrictive measures and confiscate virtual assets.”

According to Krasnov, a particular problem has arisen around the alleged use of digital currencies for bribes, which is more difficult to detect than more traditional means of corruption via fiat money. This is a spokesperson for Rosfinmonitoring, Russia’s financial supervisory authority, who suggested there are plans to track digital currency withdrawals and introduce a new classification for the transactions code. suspicious in digital currencies.

Digital currency has also been seen as a fundraising tool for political and civilian activists in Russia, with the crackdown also likely to affect the way they use digital currencies to raise funds.

The rules will give the regulator greater powers to fight digital currencies in the country, at a time of increasing pressure from regulators around the world determined to introduce stricter regulation in the industry.

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