Problems and Prospects for Foreclosing Cryptocurrency through Criminal Punishment

The article focuses on the problems of possible legal regulation of cryptocurrency turnover. Having analyzed the current legislation, the author concludes that currently there are no legal mechanisms that would make it possible to collect cryptocurrency through criminal penalties. The following measures are required to ensure the foreclosure of cryptocurrency. The regulatory authorities should visualize the rights to cryptocurrency that would allow personifying its owner. Of course, it can be argued that anonymity is the essence of cryptocurrency, which makes it attractive. With this feature gone, the idea of blockchain turnover of assets would be useless. However, anonymity is somewhat arbitrary. Cash turnover is also quite anonymous, but this does not mean that it cannot be detected physically. As a rule, electronic wallets of electronic platforms (the so-called crypto-exchanges or crypto exchangers) are used to exchange cryptocurrencies for fiat currencies. Their activities are quite accessible for legal regulation. It is possible to oblige such market participants to identify their users and provide information to regulatory authorities. The foreclosure would be possible by sending a corresponding demand (executive document) to write off to the operator of an electronic platform, similar to that sent to a person who takes into account the debtor’s rights to equity securities in accordance with Article 73.1 of the Federal Law “On Enforcement Proceedings”.

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