On Monday, 7th May during the ruling at a Russian arbitration court of appeals, has defined cryptocurrency as a property with value. However, another court in Russia had already made a verdict concerning cryptocurrencies, setting aside the previous decision taken. With all these rulings, Russia does not even have a legal framework for cryptocurrencies.
The Ninth Arbitration Court of Appeals ruled on Monday that a bankrupt person’s cryptocurrency must be included in the debtor’s bankruptcy estate.
The most recent example is of Russian Ilya Tsarkov who filed for bankruptcy in October of last year. After filing, the court gave the order to transfer his cryptocurrencies to the trustee, Alexei Leonov. Alexei Leonov will be given the private key to the crypto wallet belonging to Tsarkov.
Tsarkov disagreed, arguing that cryptocurrency isn’t property, and initially won. After Leonov appealed the action, Tsarkov was told to disclose the amount of funds he had in his account. Unfortunately for Leonov, the man only has 0.2 Bitcoin to his name, worth today around $1,840.
Initially, the arbitration court looking at the case ruled on February that cryptocurrency could not be included in the bankruptcy. Their reasoning was because of a lack of legislative groundwork that could establish guidelines.
It took a higher court to place digital coins like Bitcoin under the same category with vehicles, houses, antiques, and other valuables that could be appraised and repossessed to repay debts.
Today, as the Russian Court considers Cryptocurrency to be a valuable asset like property, the legal frame for cryptocurrencies in Russia still needs to be passed.
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