On Wednesday, March 24, the Cabinet of Ministers decided to transfer the realization of the virtual currency, which has been seized in criminal proceedings, to the Provision State Agency (PSA).
In order to ensure the implementation of virtual currency, the SEA will maintain virtual currency wallets created for this purpose on the platform of a virtual currency service provider registered in Latvia or a member state of the European Union, the European Economic Area or the North Atlantic Treaty Organization.
"Virtual currency transactions are becoming more popular in the world every year, which inevitably contributes to fraud in this area, as virtual currencies have become the subject of high-risk speculation. Thus, in addition to the property seized and seized in the physical world, the work of the State Police is also increasing in the virtual financial world, namely, illegal transactions with virtual currency, which is later identified, seized and seized. Creating a virtual wallet is a very appropriate solution, as it will relieve the work of the police and ensure a transparent process of tracking virtual money. To transfer this function to the State Security Agency, I consider it a logical and reasonable judgment that will introduce foreign good practice in this field in Latvia,” said Minister of the Interior Sandis Ģirģens,” said Minister of the Interior Sandis Ģirģens.
Such a solution is considered to be the most appropriate, as it will ensure a uniform practice of virtual currency realization throughout the country, as well as relieve the investigative institutions from performing functions uncharacteristic of them.
The SEA will hand over the realization of virtual currencies to the process facilitator of any investigative institution specified in the Criminal Procedure Law, who will have made a decision on the realization of the seized virtual currency.
If the person conducting the proceedings has made a decision to seize the virtual currency in accordance with the Criminal Procedure Law, it shall be immediately placed in the virtual wallet created by the SEA and notified to the SEA in writing within one working day, indicating its amount, placement time and brief summary of the case.
Further, within five working days after receiving information about the permit to start sales: the SEA conducts market research, evaluating at least three virtual currency sales options offered by the service provider (takes into account virtual currency sales prices, sales costs, possibility to exchange virtual currency for another virtual currency), and selects the most advantageous offer for the sale of virtual currency; sells the virtual currency to the service provider and notifies the process facilitator thereof in writing within one day; prepare a description of the virtual currency, evaluation and realization act.
If it is not possible to realize the virtual currency in accordance with the above procedure, the SEA will realize the virtual currency at auction.
According to the European Parliament and the Directive, virtual currencies are digital representations of value that are not issued or guaranteed by a central bank or public authority, are not necessarily pegged to a legally established currency and have no legal status of currency or money but are accepted by natural or legal persons, which can be transferred, stored and traded electronically.
Such amendments were made in accordance with the amendments to the Criminal Procedure Law decided by the Saeima on June 11, 2020, which envisaged supplementing it with a delegation to the Cabinet of Ministers to determine the procedure for the implementation of virtual currency.
Prepared:
Samanta Nalivaiko
Ministry of the Interior
Communication departments
Public relations specialist
Phone: 67219082
E-mail: samanta.nalivaiko@iem.gov.lv