Protocol for Handling Cryptoassets Now Approved

On January 28, 2025, the Ministry of Security approved Resolution 117/2025, adopting the General Protocol of Action for First Responders Identifying and Seizing Potential Cryptoasset-Related Evidence. This protocol establishes standardized guidelines for security forces when identifying, preserving, and handling cryptoassets as evidence in police investigations.

The Protocol introduces specific rules for identifying and collecting digital evidence related to cryptoassets, and urgent measures to prevent modifying or transferring assets during police proceedings. It also strengthens cooperation with Virtual Asset Service Providers (PSAVs) to improve the traceability and recovery of funds within the framework of judicial investigations.

The Protocol establishes that the quick transfer into a digital wallet, controlled by the authorities, will allow them to maintain control over seized assets and avoid criminals from potentially making movements to disperse the funds and hinder their recovery. Once the crypoassets have been secured, appropriate investigation and forensic analysis may be conducted to establish their origin and association with criminal activities, a crucial step for presenting solid evidence in judicial proceedings.

Additionally, the Protocol introduces specific procedural guidelines when verifying the presence of Potential Evidentiary Elements (PEP), which are defined as those devices that can hold information resulting in digital evidence. It also presents certain indicators to which agents must pay special attention, such as seed phrases[1] written on paper or in digital formats, cold wallets in card format, and/or QR codes.

The Protocol also introduces a series of questions for first responders to ask when receiving a report involving the theft of cryptoassets, such as which crypoassets were in the wallet, and whether the criminal’s IP address was registered when logging into the wallet.