Bitcoin is "valuable property" and Russian courts have decided that Bitcoin can be used to repay debt

Deep Monkey Financial reported that while bitcoin cryptocurrencies have been used as currencies for some time around the world, governments are still unclear how to classify cryptocurrencies. Many questions have not yet been answered: Is cryptocurrencies the securities? Is cryptocurrency the legal property?

Obviously, the SEC thinks that the time to face the first issue has not arrived yet, but in Russia, the problems in real life have forced law enforcers to go one step ahead.

Russian courts indirectly recognize the cryptocurrency as a property and recognize its value.

In a judgment that was deemed landmark, the Russian court ruled in favor of including Bitcoin in the debtor’s bankruptcy property.

The importance of this case is that the judgment classifies Bitcoin as “valuable property” and is a strong signal that Russia recognizes virtual assets.

The origins of this dispute can be traced back to the claim filed by the bankruptcy administrator Alexei Leonov Alexi Leonov to the Ninth Arbitration Court of Appeal in October 2017. Ilya Ilsa Tsarkov, a lower court initially directed bankruptcy, disclosed that he The contents of the wallet of Blockchain.info as part of the property valuation process.

At the time, however, the court rejected the lawyer’s request for Bitcoin to participate in the repayment process, citing the lack of a convention for selling cryptocurrencies.

After Tsarkov failed to pay the debt ($285,000) required for ordinary assets, the appellate court overturned the previous verdict and ordered Mr. Tsarkov to transfer the digital currency as valid legal property.

"The court indirectly admits that cryptocurrency is a property and recognizes its value," the local media quoted Leonov as saying.

Although the Russian legislature did not provide a final definition of cryptocurrency, this ruling set a precedent for recognizing the potential use of digital assets in contractual agreements, and the eventual adoption of this ruling would mean that Bitcoin has all the features of property rights.

Russian politicians have repeatedly confirmed that laws need to be drafted to expand the scope of supervision to cover this dynamic development field, and industry insiders are worried that the new law will make the authorities unnecessarily interfere with blockchain-related business activities.

The latest draft law defines cryptocurrency as "another special type of property." However, it has not yet described the rules of taxation or mining activity, and these rules can be regarded as "entrepreneurial activities."

Reference: financemagnates

integration: Deep Monkey Finance