Against the backdrop of countries like the United States increasingly accepting Bit cryptocurrency reserves, legal activists in Russia are pushing for the creation of a potential Bit cryptocurrency fund. Evgeny Masharov, a member of the Russian Civic Chamber, has proposed the creation of a government Bit cryptocurrency fund that would include assets confiscated from criminal cases. According to a report from TASS on March 20, Masharov said this Bit cryptocurrency fund aims to generate revenue for the government, targeting social projects. He said, "Funds from the Bit cryptocurrency fund can be used for social, environmental and educational projects."
Masharov's proposal comes as Russian officials are working on new laws to recognize Bit as an asset for criminal proceedings. Alexander Bastrykin, head of Russia's Investigative Committee, said a related draft had been sent to the government for consideration, according to an RBC report on March 19. Masharov said, "Bit confiscated from criminal proceedings must serve the state's interests."
Masharov also suggested that to achieve this goal, a special fund could be created, putting the Bit on its balance sheet. He believes that many confiscated Cryptoassets could significantly increase the market capitalization over time.
Russian authorities have seized Cryptoassets for years. Masharov's proposal to channel confiscated Cryptoassets towards state interests is the result of years of legal development. Since at least 2021, Russian prosecutors have pushed legal initiatives to allow the government to seize Bit originating from criminal activity, but a clear framework is still lacking.
Nevertheless, Russia has not missed the opportunity to confiscate millions of dollars' worth of Bit from illegal cases. However, Russia's current laws do not specify standards for distributing this money.
Central Bank of Russia Governor Elvira Nabiullina opposes investing in Bit. The idea of a potential social Bit cryptocurrency fund in Russia could resemble a strategic Bit reserve, aimed at holding seized BTC. However, Nabiullina has previously strongly opposed the idea of the Central Bank of Russia investing in Bit, seeing it as a highly volatile asset unsuitable for value preservation.
