Russian Constitutional Court Rules Crypto Assets Subject to Property Rights, Holders' Rights Receive Judicial Confirmation

Odaily News The Russian Constitutional Court recently ruled that crypto assets fall within the category of property protected by property rights. This ruling is considered to have far-reaching implications for future civil disputes and criminal cases involving crypto assets.

Ignat Likhunov, head of the Russian law firm Cartesius, stated that this ruling provides clear legal grounds for law enforcement agencies and courts when dealing with issues related to stolen or disputed digital assets, and establishes an important precedent. The ruling also clarifies that as long as crypto assets are legally obtained, their property rights should be protected by the judiciary, even if they have not been declared to tax authorities.

The case originated from a civil lawsuit filed by Moscow resident Dmitry Timchenko. In 2023, Timchenko lent 1000 USDT to another person, but the borrower failed to repay as agreed. Previously, lower courts dismissed his claim on the grounds that "stablecoins are not within the scope of digital financial asset legislation." The Constitutional Court pointed out that the non-declaration of crypto assets does not automatically negate their property rights, and the relevant declaration obligation applies only to miners.

The ruling comes as Russia is advancing a new round of crypto regulatory legislation. Analysis suggests that this judgment provides clearer judicial protection for crypto asset holders before the legislation is finalized. (DL News)