Ministry of Internal Affairs is developing a mechanism for the seizure and confiscation of cryptocurrencies
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The Ministry of Internal Affairs, together with the Federal Financial Monitoring Service, the General Prosecutor's Office, the Investigative Committee, the Ministry of Justice, the FSB, the Federal Customs Service and the Federal Security Service, with the participation of the Supreme Court, must prepare the legal mechanism for the seizure of cryptocurrency by December 31, 2021. The information that such a measure is being discussed along with other proposals to combat IT crimes was confirmed by a representative of Group-IB, a company that specializes in combating cyber crimes.
The trend of a constant increase in the number of crimes using virtual assets, the insecurity of individuals from this type of criminal encroachment, of course, dictate the need to develop mechanisms for legal regulation and control over the circulation of virtual assets. Hackers who hack into users' computers and systems of large companies often require them to be paid in cryptocurrency (companies in Russia and other countries faced the demand for ransom in bitcoins).
From a technical point of view, enforcing a cryptocurrency is a rather complicated process, because if the person whose cryptocurrency is being enforced does not reveal the private key from his wallet, then it will be impossible to obtain it. But you can forget the private key, lose the piece on which it is written, and so on. It is very interesting how this problem will be solved by law enforcement agencies.
However, if the cryptocurrency is stored on a cryptocurrency exchange, law enforcement authorities can theoretically write an official request to it with a request to block the funds of a particular client (all clients of the cryptocurrency exchange are identified) or, for example, transfer them to a special account.
Experts believe that the legal mechanism for the seizure of cryptocurrency from the Ministry of Internal Affairs will not affect the digital money market, as well as its value. Experts advised not to worry and not to sell their assets because of this, because at the moment the initiative of the security forces is being considered in the long term, and even if adopted, it will concern only those citizens who have violated the law.