The court of Russia declared bitcoin property
The Moscow arbitration court during consideration of the bankruptcy case Ilya Tsarkov, ruled that the 0.2 bitcoin, a cryptocurrency is stored in its wallet, are the property.
During hearings on the bankruptcy legal representative Tsarkov claimed that bitcoin cannot be considered property, because it is not recognized by the state. The lawyer said that bitcoin, in the same way as other cryptocurrencies, is the “information” or “money surrogate”.
However, the plaintiff Alexei Leonov insisted that if crypto-currencies will not be treated as property, it will create the opportunity for debtors to convert their assets into bitcoin and not to repay the debt.
The court accepted the latter argument, ruling that cryptocurrencies can be classified as “other assets”, without any additional definitions.
“Taking into account modern economic realities and the high level of information technology development, the broadest definition of “other property” acceptable,” the court ruled.
Thanks to the precedent regulation, crypto-currencies and tokens will now be considered in Russia as the property pending the enactment of any legislation defining the status of the cryptocurrency.
Until the ruling crypto-currencies and tokens had no legal status in the country.
In may last year the state Duma in the first reading adopted a package of three bills aimed at introducing regulation in cryptoprocessor.
Whether the sign of the Russian President, Vladimir Putin, cryptocurrency bills of the state Duma? Only time will tell.
As expected, the second reading will take place in the near future.