With certain deals being closed using Bitcoins as a form of currency, The Ukrainian law enforcement authorities have decided to compensate a citizen in Bitcoin cryptocurrency for the moral damages caused to him.
A district court in Kiev Oblast has accepted a lawsuit which is setting a precedent in Ukraine in which the plaintiff seeks compensation in Bitcoin for “moral damages” caused by law enforcement officials. A preliminary hearing has been scheduled after the presiding judge found no legal grounds to reject the claim.
Example set in Ukraine
For the first time in the history of Ukraine’s judicial practice, a claim for compensation in cryptocurrency has been accepted by a local court.
The Ukrainian victim, Dmitriy G. wants to be paid 1 BTC for “moral damages” he suffered in result of an “unlawful” search. He is reportedly suing officers from Ukraine’s Security Service (SBU) and their colleagues from the Prosecutor’s Office who conducted the operation.
The defendants have 15 days to respond officially to the claims made by the plaintiff. If the government agencies fail to do so, the court proceedings will continue based on the available information.
Judge Zhuravskiy, from the Borispolskiy District Court in Kiev Oblast found no legal grounds to reject the lawsuit, according to a document, acquired by the outlet.
Regardless of the end result, the legal action has already set a precedent in Ukraine’s court practice. If Dmitriy is granted the bitcoin compensation he seeks, that would de facto legalize cryptocurrencies as means of payment in the country.
Status of Cryptocurrency in Ukraine
The acceptance and status of cryptocurrencies in Ukraine is still undefined. Since last October, At least three drafts have been introduced in parliament.
- One of the bills defines cryptocurrency as property that can be exchanged for goods and services.
- Another one states that cryptos are financial assets.
- A third, supplementary draft amends Ukraine’s tax code to introduce exemptions for crypto profits and incomes.
However, no real progress towards the adoption of new legislation has been reported in 2018.
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