TL;DR
- Putin signed a February 2026 law classifying crypto as intangible property and empowering courts to seize and confiscate coins in criminal cases.
- Investigators must record asset type, quantity and wallet addresses, may transfer coins to government wallets, and can request exchanges to freeze or retrieve funds.
- A framework due July 1, 2026 caps non-qualified buys at 300,000 rubles ($4,000), requires licensed platforms, keeps domestic payments banned, but permits cross-border settlements.
Russian President Vladimir Putin has signed legislation that formally gives courts and law enforcement the authority to seize and confiscate cryptocurrency during criminal investigations nationwide. Russia is treating crypto as property, and that changes the enforcement playbook. The law, approved in late February 2026, classifies digital currencies as “intangible property,” enabling holdings to be frozen, added to case materials, and taken to satisfy rulings or civil claims. Authorities can also take control of wallets and hardware devices, and may seek cooperation from exchanges. The rules are expected to take effect ten days after official publication.
How the confiscation framework operationalizes enforcement
The statute outlines a structured seizure process. Investigators must document what they seize, then secure it in a controllable form. Case files are required to record the cryptocurrency type, the quantity, and wallet addresses linked to suspects. Authorities are empowered to confiscate physical devices, including servers, computers, and hardware wallets, when they are relevant to an investigation. Where technically feasible, officials can transfer seized coins into government-controlled wallet addresses. The framework also creates a legal pathway to request assistance from foreign exchanges to freeze or retrieve assets, with executive rules to define storage standards later.
Russia is building a national crypto framework due by July 1, 2026. The model blends investor access limits with tougher platform licensing. “Non-qualified” retail investors would face purchase caps of 300,000 rubles, $4,000, and access would be limited to liquid tokens including Bitcoin and Ethereum. Qualified investors would avoid volume limits but would be barred from privacy coins such as Monero, Zcash, and Dash. Exchanges and brokers must obtain licenses or risk being blocked from July 2026. By July 1, 2027, unlicensed intermediary activity could trigger criminal penalties, including prison terms up to seven years.
This is not a full ban, but it tightens the perimeter. Domestic crypto payments stay prohibited, while cross-border use is enabled. The rules keep the 2021 ban on paying for goods and services with crypto in Russia; from 2026, illegal payments may trigger confiscation and fines. Yet digital assets and stablecoins may be used for cross-border settlements and foreign trade, and foreign-account holdings must be reported to the Federal Tax Service. Enforcement remains hard: investigators must link wallets to suspects, offshore venues complicate freezes, and decentralized exchanges have no central entity, inviting tougher access controls.
