Russian Bailiffs to Begin Seizing Cryptocurrency from Debtors

Russia has approved a procedure for bailiffs to seize cryptocurrency from debtors. The Director of the Federal Bailiff Service stated that the mechanism will be simple and effective.

The process involves sending a ruling to the digital depository. The organization is obliged to deduct the cryptocurrency from the debtor's account and transfer the funds to the state authority's accounts.

The mechanism is already being applied in practice. According to the Federal Bailiff Service, work is underway in the following areas:

• 1 enforcement proceeding regarding the confiscation into state ownership of cryptocurrency acquired with funds of unconfirmed lawful origin
• 13 enforcement proceedings on the confiscation of cryptocurrency

Cryptocurrency assets in Russia are gradually becoming a full-fledged object of enforcement proceedings. This indicates the integration of digital assets into the country's legal framework.