A member of Russia’s Civic Chamber is pushing for the creation of a government-managed fund comprised of seized cryptocurrency assets.
Reports from local media state that the proposal came from legal activist Evgeny Masharov, who outlined the initiative as a structured mechanism for holding and utilizing crypto assets obtained through criminal proceedings.
According to Masharov, seized cryptocurrencies “must work for the benefit of the state” and can be used to fund “social, environmental and educational projects.”
The proposal was included as a part of a broader legislative push to officially recognize cryptocurrency as property under Russia’s criminal law.
Russian regulators are currently debating a bill, backed by the Investigative Committee and the Ministry of Justice, that aims to clarify how digital assets can be seized, classified as evidence, and handled in criminal cases.
Authorities have been pushing for clear rules on handling illicit crypto for years, with the Investigative Committee calling for new legal measures as early as 2021, the report noted.
In the meantime, the government has already confiscated millions in crypto linked to criminal activity.
For instance, in January 2025, Russian bailiffs liquidated more than 1,032 Bitcoin confiscated in a bribery case worth approximately one billion rubles at the time.
Regarding his proposal, Masharov contends that without a structured approach, confiscated crypto remains in legal limbo.
He argues that instead of simply locking these assets away, they should be removed from circulation and placed into a government-controlled fund, “the [market] capitalization of which could increase significantly over time,” allowing the state to use the proceeds for public projects.
The bill has already been submitted to the government for review and is currently awaiting further consideration.
Amidst this backdrop, there have also been calls for the creation of a strategic Bitcoin reserve in Russia.
Last year in December, Duma state deputy Anton Tkachev urged Finance Minister Anton Siluanov to consider including Bitcoin as a measure against safeguarding itself from US sanctions.
Russia’s focus on crypto regulations
Russia houses a thriving crypto economy, but the market has also been plagued with illicit activities.
As previously reported by Invezz, one of the biggest challenges has been the rise of no-KYC (Know Your Customer) crypto exchanges, which operate without formal registration and facilitate transactions outside traditional financial oversight.
Despite international efforts to shut them down, such platforms have continued to emerge.
Regulatory efforts have so far yielded mixed results. In early February, Russia’s telecom regulator Roskomnadzor blocked BestChange, a major OTC crypto aggregator.
The crackdown followed new laws restricting Bitcoin mining and crypto advertising, but traders quickly migrated to alternative platforms, keeping the underground market alive.
At the same time, Russian authorities have also expanded control over domestic mining operations. A new registry system introduced last year requires Bitcoin miners to submit sensitive data, including wallet addresses.
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