Russian Police Chief Says Legal Precedent Could Be Used to Help Sell BTC, But Calls for More Legal Clarity

Russian law enforcement officials say they have developed new methods to help them convert Bitcoin (BTC) seized in criminal cases into cash for the Treasury.

In a video posted on the Federation Council's RuTube page, Dmitry Aristov, head of the Federal Service for Law Enforcement (FSSP), called Bitcoin a “problematic asset.”

Is the Russian Police's Bitcoin Problem Solved?

Aristov made the remarks at a meeting of the Federation Council's Constitutional and State-Building Committee.

The council, also known as the Russian Senate, is the upper house of the country's parliament.

The FSSP is currently working with “other stakeholders” on “mechanisms that would turn Bitcoin into state revenue.”

Aristov said that the FSSP could use legal precedent from a landmark criminal case to guide further action.

A new stalemate in the crypto market?

After years of political deadlock due to conflicting stances on crypto regulation, Russia finally passed two important crypto-related laws last year.

One legalized cryptocurrency mining as a recognized form of business activity. The other allowed Russian companies to use cryptocurrencies as a means of payment in international trade, within the scope of a sandbox run by the Central Bank.

However, most critics and many leading lawmakers agree that more needs to be done. A much older law bans the use of cryptocurrencies as a means of payment within Russia.

The Central Bank has since signed off on a proposal to allow qualified investors to trade cryptocurrencies under its experimental framework.

But the bank favors more extreme measures. These include a complete ban on crypto exchanges operating outside the sandbox, as well as a ban on retail and corporate crypto investment.

Moscow, however, appears divided on the issue. Several ministries and most major industrial mining companies favor regulating crypto exchanges and crypto trading rather than a China-style ban.

As such, it appears that a new impasse is preventing the legal clarity the FSSP would like to see.

The Tambiev Case: Opening the Legal Door for the Police?
RBC media outlet appears to suggest that Aristov may be referring to the case of former Russian Investigative Committee investigator Marat Tambiev.

In 2024, Tambiev was convicted of accepting Bitcoin bribes from an international fraud network. He was sentenced to 16 years in prison, with police seizing 1,032 BTC.

In January of this year, the Russian Finance Ministry said it had “started transferring” the funds to its treasury. The ministry had initially announced plans to “sell” around $10 million in coins.

Tambiev, a district court heard last year, took BTC from members of the Infraud Organization hacker group in exchange for redirecting a criminal investigation into the group.

Last month, Moscow officials said they were drafting a bill that would recognize cryptocurrencies as a form of property “for the purposes of criminal proceedings.”

The government is reportedly “considering the bill.” The Citizens Chamber of Commerce also recently proposed the creation of a state-run fund for “confiscated crypto assets.” The chamber proposed that “proceeds” from the sale of these “assets” could be used to fund “social projects.”