Russian Court Ruling Recognizes Bitcoin as “Valuable Property”

In what is being perceived as a landmark judgment, a Russian court has ‎ruled in favor of a petitioner who asked the judge to include the bitcoins held ‎by a bankrupt person in the debtor’s bankruptcy estate.

Significantly, the judgment classifies Bitcoin as a “valuable property,” a strong sign towards ‎the recognition of the virtual asset in Russia‏.‏

The origins of this dispute traced back to a claim filed to the Ninth ‎Arbitration Court of Appeals by the bankruptcy trustee Alexei Leonov in October ‎‎2017. A lower court had initially directed the bankrupt Ilya Tsarkov to disclose the contents of his ‎Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term.info wallet as part of the real estate estimation process.

But at the time, the ‎court rejected the lawyer's request to involve the bitcoins into the repayment ‎process, citing the absence of practice in selling Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.‎

Following the failure of Tsarkov to pay the required debt ($285,000) in ‎ordinary assets, the appeal court has overturned the previous judgment and ordered Tsarkov to transfer the digital currency as a valid and legitimate property.‎

“The court indirectly recognized the cryptocurrency as property and recognized its value,” local media quotes ‎ Leonov as saying.‎

While Russian legislation does not provide a final ‎definition of cryptocurrency, this ruling sets a ‎precedent which recognizes the potential use of digital assets in contractual agreements.‎ The final passing of this judgment would mean that Bitcoin shows all the characteristics of a ‎property right.

Russian politicians repeatedly confirmed that it is ‎necessary to draft ‎laws and expand regulatory jurisdiction ‎in this dynamically developing field, while industry ‎participants are concerned about the unwarranted interference ‎of ‎law enforcement authorities in business activities ‎involving the use of ‎blockchain technology.‎

The latest draft law defines cryptocurrencies as “another ‎property of a special ‎kind.” However, it does not yet ‎describe the rules of taxation or ‎mining activities, which ‎can be considered as “an entrepreneurial activity.” ‎