Legal Alert: Court Decision Effects Use of Crypto-Currencies in the Russian Federation

An interesting decision issued recently by the Moscow Arbitration Court, reinforces the status of crypto currencies in the Russian Federation as being outside of Russia law, which means crypto-currencies are not protected by the state.

Document: Ruling of Moscow City Arbitration Court dated 05.03.2018 in the case N A40-124668 / 17-71-160F.

The Moscow City Arbitration Court did not grant the petition of the financial manager to include crypto currency in the bankruptcy estate. The refusal was based on the following:

  • Crypto currency is not an object of any type of civil right;
  • Operations with crypto-currencies are outside of current laws and they cannot be secured by force of state;
  • Due to the anonymity of users and the absence of a monitoring center, it is impossible to reliably determine exact ownership of crypto currency in the cryptotool.

The Russian Federation Ministry of Finance and the Central Bank have prepared draft laws that are designed to regulate the status of the crypto currency.

This post is also available in: ruRussian