Proposal for a Crypto Asset Seizure Fund by Russian Civic Chamber

Russia is contemplating a strategy to channel confiscated cryptocurrencies into a special fund, with earnings from its utilization designated for social programs.

Yevgeny Masharov, a representative of the Public Chamber of the Russian Federation, voiced his approval for the suggestion, which is part of a larger endeavor to categorize crypto as property under criminal legislation.

Masharov informed TASS that seized digital assets should "work for the advantage of the state" instead of being idle.

The proposed fund would manage confiscated cryptocurrencies, enabling them to appreciate in value over time. Income produced from these assets could be channeled toward social, ecological, and educational initiatives.

The undertaking coincides with a bill introduced by Russia’s Ministry of Justice and the Investigative Committee that aims to classify cryptocurrency as property and material evidence.

Masharov underscored the necessity of withdrawing illegal crypto holdings from circulation while ensuring they serve a positive function. He also conveyed his readiness to mediate discussions between law enforcement, tax authorities, and the crypto industry to establish a consolidated position on the issue.

If implemented, the proposal could establish a systematic method for dealing with digital assets connected to criminal activities while incorporating them into Russia’s overall financial structure.