Russian Arbitration Court Recognizes Bitcoin as Asset in Bankruptcy Case
Russian Court Recognizes Bitcoin As Asset
In early August, a Russian arbitration court considered a bankruptcy case against Ilya Tsarkov. One of Tsarkov’s assets included 0.2 bitcoin in his crypto wallet and the issue is whether the crypto could be listed as part of his assets, and the court affirmed.
At the bankruptcy hearing, Tsarkov argued that bitcoin should not be considered an asset because Russia does not legally recognize bitcoin as such. And that bitcoin, like other cryptocurrencies, is “information” or “surrogate money banned on the Russian territory.”
The plaintiff insisted otherwise and argued that not treating bitcoin as an asset creates an opportunity for debtors to convert their assets into crypto to avoid paying their debts. The latter argument passed muster and the court ruled in the plaintiff’s favor. The Russian arbitration court stated,
“Taking into consideration contemporary economic realities and the high level of development of information technologies, the widest possible definition of ‘other assets’ is acceptable.”
In terms of legislative efforts, the lower house of the Russian parliament introduced three draft laws to provide regulation into the crypto space. Of course, this is just an introduction and the legislation has a long way to go before it is finalized, if at all, into law.