Russia May Establish a Cryptocurrency Fund: Is It Like the US or Are New Purchases Coming? - Coin Bulletin

In Russia, legal activists are accelerating their efforts for the government to establish a fund composed of cryptocurrencies obtained from crimes.

Evgeny Masharov, a member of the Russian Civic Chamber, proposed the establishment of a government-owned cryptocurrency fund. It has been suggested that this fund would include assets seized as a result of criminal investigations. Masharov's proposal aims to generate revenue for the government and plans to direct the generated income towards social projects. Masharov stated that this fund could also contribute to environmental and educational projects.

Masharov's proposal has become even more notable with the Russian authorities bringing forward a new draft law aimed at recognizing cryptocurrencies as assets for criminal proceedings. On March 19, Chairman of the Russian Investigative Committee Alexander Bastrykin announced that the relevant draft had been submitted to the government. Masharov stated that the revenue generated from the confiscated cryptocurrencies during criminal investigations would be used for the benefit of the state.

It is expected that cryptocurrencies will contribute to the state

Masharov stated, "For these purposes, a special fund could be created and cryptocurrencies could be included in the fund's balance sheet," expressing his confidence that the market value of the seized crypto assets will significantly increase over time. In Russia, although there have been efforts for years on such regulations, a definite framework for the state’s authority to confiscate cryptocurrencies obtained through crime has not yet been established.

Russia's current laws do not establish any standards for how and where confiscated cryptocurrencies are to be distributed. However, the country’s government continues to seize millions of dollars worth of cryptocurrencies obtained through crime.

On the other hand, the President of the Central Bank of Russia, Elvira Nabiullina, is showing a clear stance against Russia's potential cryptocurrency investments. In a statement made in December 2024, Nabiullina said, "Cryptocurrency investments do not make sense for central banks in terms of value preservation because they are a very volatile asset."