Russian Court Recognizes Bitcoin As Valuable Propertybr>
Russia’s Ninth Arbitration Court of Appeals has recognized cryptocurrency as a “valuable property.”
In its ruling on Monday, the court recognized cryptocurency as a property with value in bankruptcy proceedings. The court ruled that a bankrupt person’s cryptocurrency must be included in the debtor’s bankruptcy estate. The case involves Ilya Tsarkov, a Russian citizen, who filed bankruptcy in October 2017.
In February of this year, the Moscow Arbitration Court ordered Tsarkov to disclose the contents of his Blockchain.info wallet as part of the real estate estimation process. Bankruptcy trustee Alexei Leonov requested the court to order the transfer of Tsarkov’s cryptocurrencies into the bankruptcy estate. But the court rejected his request at the time, citing the absence of practice in selling cryptocurrencies.
The Ninth Arbitration Court of Appeals overturned the judgment of the Moscow Arbitration Court after Leonov appealed, and ordered Tsarkov to transfer the cryptocurrency as a valid and legitimate property. Tsarkov reportedly owns almost 0.2 bitcoin (approx: $1,885 USD).
“The Ninth Arbitration Court of Appeals indirectly recognized the cryptocurrency as property and recognized its value,” local media quotes Leonov as saying. “The Moscow Arbitration Court should have taken into account modern economic realities and new information technologies…bad-faith parties could exploit the fact that cryptocurrencies were excluded from bankruptcy estates by converting their assets and thus rendering them inaccessible.”
The court of appeals said that Russian legislation currently does not provide the definition of cryptocurrency and there are no requirements for its circulation.
“There is no way to tell if it is property, information or a ‘surrogate’…it is impossible to regulate the relations involving cryptocurrency,” the court said.