Russia is set to introduce new measures that could significantly impact how digital assets are handled during bankruptcy proceedings. The Ministry of Justice, in conjunction with the Federal Bailiff Service (FSSP), is preparing to expand the role of bailiffs to include the seizure and liquidation of cryptocurrencies and central bank digital currencies (CBDCs).
Expanded Authority for Bailiffs
As part of the new enforcement strategy, the Ministry of Justice plans to grant bailiffs broader powers to execute foreclosure on various types of digital assets. This includes:
- Digital Ruble (CBDC)
- Cryptocurrencies
- Tokenized Assets
- Securities
- Non-Fungible Tokens (NFTs)
Bailiffs will be equipped with advanced tools such as mobile phone geolocation services to enhance their capability to track and seize digital assets effectively.
Reassignment of Investigation Duties
The initiative also suggests transferring the responsibility for investigating crimes related to bankruptcy from the Ministry of Internal Affairs to the FSSP. A representative from the Ministry of Justice argued that this shift would streamline the enforcement process, given the FSSP’s expertise in compulsory enforcement.
Plans for Liquidating Seized Assets
In addition to seizing assets, the Russian government is considering authorizing the sale of confiscated digital assets through electronic trading platforms. This would allow bailiffs to liquidate assets on cryptocurrency exchanges, converting them into financial resources for the government.
These measures reflect a significant shift in Russia’s approach to managing digital assets in bankruptcy cases. By enabling the seizure and sale of cryptocurrencies and CBDCs, the Russian authorities aim to enhance enforcement mechanisms and better address financial challenges posed by distressed crypto-focused companies.
