Russia proposes $100M crypto fund for social projects

The Russian Civic Chamber has proposed the establishment of a dedicated cryptocurrency fund using assets confiscated from criminal activities.

This initiative, championed by Evgeny Masharov, aims to generate revenue for the government to support social, environmental, and educational projects.

Masharov emphasised that seized cryptocurrencies should "work for the benefit of the state," highlighting the potential for these assets to appreciate over time and benefit the nation.

The proposed fund is part of broader legislative efforts to recognise cryptocurrencies as property within criminal procedure laws.

Alexander Bastrykin, Chairman of Russia's Investigative Committee, confirmed that a draft bill has been submitted to the government for consideration.

Russia has been seizing crypto assets for years, but a clear framework for managing these funds has not been established.

The creation of a centralised crypto fund would provide a structured approach to handling confiscated assets, potentially marking a new chapter in state involvement in the cryptocurrency market.

However, the Bank of Russia remains cautious about cryptocurrency investments, with Governor Elvira Nabiullina expressing concerns about the volatility of digital assets.

Despite this, the proposal for a crypto fund reflects Russia's growing interest in leveraging cryptocurrencies for state purposes.

Russia's proposed crypto fund represents a significant step towards formalising the management of seized digital assets, with potential implications for both domestic policy and international regulatory frameworks.

"Cryptocurrencies confiscated as part of criminal proceedings must work for the benefit of the state," Masharov noted, underscoring the strategic intent behind this initiative.