Russia’s Supreme Court is advancing efforts 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.

Recognizing Crypto as Property

The Russian Supreme Court is working on a legislative initiative to define digital currencies as property for penal proceedings, according to a report by state news agency Tass. Chairperson Irina Podnosova emphasized the need for legal clarity, citing the increasing use of cryptocurrency in criminal activities.

“With the spread of cryptocurrency in the economy, there has been a rise in crimes where digital currency is either the means of committing the crime, the criminal income, or the object of the offense,” Podnosova stated during a recent meeting attended by judges and Russian President Vladimir Putin.

Building on Past Rulings

This is not the first time Russia’s legal system has addressed cryptocurrency. In 2019, the Supreme Court ruled that converting Bitcoin into rubles constituted money laundering if the assets were obtained through illegal means, particularly in drug-related cases.

In 2021, the court recognized WMZ, the electronic currency of the Webmoney Transfer system, as an object of civil rights. These rulings indicate Russia’s gradual move toward integrating digital assets into its legal framework.

Impact on Crime Prevention

Despite relatively stable crime trends in Russia—where property crimes make up 38%, violent crimes 24%, and offenses against public security and order 24%—the increasing role of digital currency in illegal activities has raised concerns.

By classifying cryptocurrency as property, authorities can strengthen their ability to monitor and seize illicit digital assets, bringing them under existing financial regulations. This step aligns with global efforts to bring legal clarity to digital finance and curb financial crimes.

Russia’s Evolving Crypto Regulations

Russia has been cautious in its approach to cryptocurrency. While crypto payments are banned in the country, digital assets have been explored for cross-border transactions to bypass Western sanctions. The latest legal push by the Supreme Court further signals Russia’s intent to regulate the crypto space while maintaining state control over digital finance.

As more countries refine their regulatory frameworks, Russia’s move highlights the growing necessity of legal definitions for cryptocurrency, ensuring both financial security and compliance with the law.