As cryptocurrencies expand, the legal framework tries to catch them up, even when it is not an easy task. This time, the Moscow Arbitration Court, ruled that crypto funds cannot be seized to pay creditors. If a bankrupt debtor has cryptocurrencies, they cannot be seized to pay for its debts, according to RBC.
Russian Court in Favour of Cryptocurrencies
The decision was taken after the court received an application from finance manager Aleksey Leonov, that requested a permission to take the crypto funds from a debtor. The name of the debtor is Ilya Tsarkov, who had stored cryptocurrencies in his Blockchain.info wallet. Leonov requested to the court to seize Tsarkov’s cryptocurrencies by asking the password to the crypto wallet.
The court has decided to refuse Leonov’s request in order to repay the debt. Apparently, the court took this decision due to the fact that there is no clear legislation on the matter as of today.
Nikita Kulikov, executive director of the Moscow law firm HEADS Consulting, explained that the court was not able to accept Leonov’s request because the legislation about cryptocurrencies is not yet stablished.
Mr Kulikov commented about this case:
“If the court had included cryptocurrency assets in the state insolvency, that would have meant that Russia law recognized cryptocurrency assets as a type of money, which is contrary to the Central Bank’s stance, or as property, which is not established by the law.”
This case is important because it can set a precedent in Russia’s legislation. Leonov has commented about that, stating that there is no clear reason why cryptocurrencies cannot be added to the group assets that can be seized by creditors.
Russia and the entire world is discussing regulations for cryptocurrencies, the crypto market and Initial Coin Offerings (ICOs). Some countries are taking further steps, but others are waiting to see what the most important countries are going to do. The G-20 summit will treat and analyze crypto regulations during the whole year and a better stance about worldwide regulations will be agreed.