As reported by Finance Magnates, the Russian government is planning to propose a law that would allow authorities to confiscate digital assets, such as Bitcoin and other digital currencies in an effort to curb financial crimes, theft and other illicit activities allegedly taking place in Russia.

Considering that the current status of digital assets in Russia is grey and not clearly defined by existing laws, it is difficult if such a campaign can even be put in place in the near future. Furthermore, considering that so many agencies are proposed to be involved – the police, financial monitoring service, justice ministry, customs and the FSB (equivalent to the FBI in the US), it is difficult to imagine that efforts can be coordinated effectively simply because digital assets, are, well, digital and have no physical footprint.

We have reported recently on good faith efforts by companies in the United States to employ measures using sophisticated forensic and law enforcement techniques to find and return stolen or illegally obtained crypto assets, but in the case of Russia, it is difficult to imagine meaningful success of such an endeavour.