Russian Civic Chamber proposes creation of fund for confiscated crypto

Russia is considering a plan aimed at directing the cryptocurrency confiscated in a special fund, with the product of its use allocated to social initiatives.

Yevgeny Masharov, member of the public chamber of the Russian Federation, expressed support for the proposal, which is part of a broader effort to define crypto as goods under criminal law.

Masharov said to Tass That the digital assets entered should “work for the benefit of the State” rather than staying dormant.

The proposed fund would keep the confiscated cryptocurrency, which allows it to grow in value over time. Income generated from these assets could be directed to social, environmental and educational projects.

The initiative is aligned with a bill submitted by the Ministry of Justice of Russia and the investigation committee which seeks to classify cryptocurrency as real estate and material evidence.

Masharov highlighted the importance of removing the illicit cryptography assets of traffic while ensuring that they serve a constructive objective. He also expressed his desire to facilitate discussions between the police, the tax authorities and the cryptographic industry to develop a unified position on the issue.

If it is promulgated, the proposal could create a structured approach to manage digital active assets related to criminal activity While integrating them into the broader financial system of Russia.