The Russian government is planning the development of a specialized platform, according to an Izvestia report.

The crypto platform, as envisioned, would enable the country's law enforcement bodies, including courts, prosecutors, and bailiffs, to effectively seize and store cryptocurrencies that are allegedly involved in criminal proceedings.

The idea for such a platform originated from Vladimir Kolokoltsev, the Russian Minister of Internal Affairs, and has been propelled forward by an official document instructing the Ministry of Finance to investigate the feasibility of this project.

Izvestia said the document was issued by the government's Commission on Crime Prevention, chaired by Kolokoltsev himself.

The document, whose authenticity has been confirmed by the Ministry of Internal Affairs, mandates the Ministry of Finance to delve into the creation of a 'digital currency platform' that would operate within Russian jurisdiction and under state control.

This platform would serve as a means for the seizure and storage of crypto assets as part of alleged criminal investigations and proceedings.

The initiative comes in the wake of concerns over their claims that their is increasing use of digital assets for illicit activities. A Russian lawmaker recently criticized the government's slow pace in regulating the crypto market, highlighting that a significant portion of the country's black and gray markets utilize cryptocurrencies.

This sentiment is echoed by the Financial Action Task Force's recent downgrade of Russia's compliance level, citing inadequate regulation of virtual assets and cryptocurrencies.

The Ministry of Finance, tasked with exploring the creation of the platform, has not yet responded to inquiries about the project.

However, the Ministry of Justice had previously disclosed plans to enable bailiffs to seize not only cryptocurrencies but also Central Bank Digital Currency (CBDC) tokens, indicating a broader governmental interest in regulating digital assets.

As the Russian government takes steps towards implementing this platform, the move is seen as part of a larger effort to combat cybercrime and ensure the security of the financial system.

While the project's specifics are still under wraps, its development marks a significant step towards establishing a regulated and controlled environment for the use of digital currencies in Russia.