The Supreme court has amended its order of July 7, 2015, adding articles 174 and 174.1 of the Criminal code on money laundering. Now, the cryptocurrency is subject to the provisions on money laundering.
In this case the criminal is declared not only the cryptocurrency, but obtained as a result of their cashing out Fiat money. The Supreme court’s decision was made based on the recommendations of an international Group of development of financial measures for combating money laundering (FATF), a participant of which is Russia. This provision is contained in the adopted 16 may 2005 Convention of the Council of Europe Convention on laundering, search, seizure and confiscation of the proceeds from crime, which Russia ratified in 2017 (for Russia it entered into force on 1 January 2018).
The subject of crimes under articles 174 and 174.1 of the criminal code, there may be including funds converted from the virtual assets (crypto currencies) acquired as a result of the crime.
Alexander Chervotkin, judge of the Supreme court, stressed that the Plenum does not define the cryptocurrency funds, because it is not in the Russian legislation. However, clarification on this issue is required. This is because in judicial practice, the cases when the obtained from the sale of drugs, the cryptocurrency was introduced into circulation by cash withdrawal at Bank terminals. “We have specific convictions, which established that criminal income in the cryptocurrency, including from the sale of drugs in the future by making a number of financial transactions were converted into cash and withdrawn into circulation by withdrawing from Bank accounts”, — said Chervotkin.
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