In a recent debate on live status about digital currencies, Justice Minister of Russia support cryptocurrency that is still not regulated in the country. He says, Cryptocurrency is a property.
Alexander Konovalov, Russian Minister of Justice said that Cryptocurrencies are under legal category of other property. Since, there is still a pending in State Duma’s law matter, he opt that cryptocoins should not be considered as electronic money.
A few days back, when Russian legal community was involved in a bankruptcy case of bitcoin holdings which is now a challenge to give an interim response on the cryptocurrencies status. But, as there were no such firm definitions in present legislation, the question was split in two sides. Firstly, those who think crptocurrencies have real value and other side who believes that crypto doesn’t have real value only if Russian law says so.
“If digital money is not property, its theft would not be considers criminal offense because there would be no object of the crime. If cryptocurrencies are to develop, additional regulation will be necessary”.
He added that Russia must come up with strict crypto regulations besides he also identifies the fact that, “manifestation of the people’s desire to escape from total dependence”.
Duma State to Answer
Accordingly, with the current legislation, Konovalov’s comments added ongoing debate whether cryptocurrencies can be considered a property. However, the debate was aroused by a bankruptcy filing last October. In the arbitrary measures, the debtor protested the deputy’s request to include his crypto assets i.e., less than 0.2 BTC.
As such, his legal representative also mentioned that it is impossible process as cryptocurrency is still unregulated in Russia’s Civil Code. However, Moscow Arbitration Court accepts this position and said that:
“A conclusion can be drawn that cryptocurrency is a certain set of symbols/characters contains in an information system. It cannot be an object of the civil rights”.
Further, the court explains that, cryptocurrency can be considered only as property. And since then current civil law doesn’t contain the concept of “other property”.
However, the status of cryptocurrencies in the Russian Federation will be soon answered. Thus, the reading is held on Tuesday, May 22nd, as the two drafts filed in the Duma. That is, lower house of Russia’s parliament and other that focused on regulating ICOs. And second bill is expecting to amend the Russia’s Civil Code as to legalize payments in crypto.
Dmitry Medvedev, Russian Prime Minister commented that new regulations will prefer cryptos as ‘digital money’ and tokens as ‘digital rights’.