New Russian Law Will Allow Police to Confiscate Bitcoins
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Nov. 7, 2019
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According to Russian news source RBC, Russia plans to develop a law that will allow the government to confiscate bitcoins.

RBC has reported that the Ministry of Home Affairs of Russia will cooperate with several state agencies in order to develop this regulation, which could come into force from 2021.

One of the measures to be adopted is the creation of a government-owned crypto wallet to which the confiscated funds will be transferred.

It is still unknown how the authorities will be able to access the criminal's funds if they do not provide them with their private keys. If the crypto assets are stored in a crypto exchange, the police will only be able to confiscate the funds if they site owners grant them access, something that might not be very easy if we take into account that most cryptocurrency trading platforms are based in other countries.

Nikita Kulikov, head of a committee focused on cryptocurrencies at the Russian parliament, has said:

"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."

This hypothetical law will not only allow the police to confiscate bitcoins, but also any digital assets.

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