[2018-05-20] Cryptocurrency is Property in Russia, Justice Minister Confirms

[ivanpoldark]

The Russian Ministry of Justice has taken side in what looks like a lively debate about the status of cryptocurrencies that are still unregulated in the country. A bankruptcy case involving a modest amount of bitcoin has sparked discussions in Russian legal circles. Some say a crypto is nothing more than “a set of characters.” Others, including the justice minister, are categorical – cryptocurrency can’t be anything else but property.   

Russian Justice Ministry Takes Side in a Legal Argument

Cryptocurrency falls under the legal category of “other property,” Russia’s Justice Minister Alexander Konovalov told reporters this week. With two draft laws on the matter still pending in the State Duma, he also noted that digital coins should not be considered electronic money, at least on this stage.

A bankruptcy case involving some bitcoin holdings has recently stirred the Russian legal community, which was challenged to provide a provisional answer to the question about the status of cryptocurrencies. In the absence of firm definitions in the current legislation, this question split Russian legal experts in two camps. On one side are those who think that cryptocurrencies have real value, on the other – their colleagues who believe they don’t, if the law doesn’t explicitly say so.

According to Konovalov, his department has adopted a “consolidated opinion” on the legal nature of cryptocurrencies and it supports the view that they should be defined as property. “If digital money is not property, its theft would not be considered criminal offense because there would be no object of the crime,” he warned.

“If cryptocurrencies are to develop, additional regulation will be necessary. The main point is to ensure that all this does not grow into financial pyramids,” Konovalov added, quoted by Prime. He is convinced that Russia should introduce rigid crypto regulations but also recognizes that the phenomenon is itself a “manifestation of the people’s desire to escape from total dependence.”

Read more: https://news.bitcoin.com/cryptocurrency-is-property-in-russia-justice-minister-confirms/

[Tylev]

A little strange reasoning. Crypto currency is recognized as property, because if it is not done, its theft will not be a criminal offense because there will not be an object of crime. Their ruble is considered primarily money, but also property. Stealing money has always been a criminal offense. Why not immediately recognize the crypto currency as a means of payment, that is, a kind of money? All this creates an opportunity for further manipulation and prohibition of crypto currency.

[FrueGreads]

I guess that this case shows the importance of regulation in cryto, specially that "catchy phrase" where he says that "If digital money is not property, its theft would not be considered criminal offense because there would be no object of the crime.".

No wonder trying to steal crytpo is so popular. It's hard to catch the hackers, and in some countries, because of lack of regulation, they might even get away with their crimes. I don't really think that crypto should be seen as just property, because it will really mess up it's use as a currency, because of taxes. Maybe it's not that important at this stage, because there aren't many option for people to actually use crypto, but the goal is to use it as a currency, so we really need to see it legally as a currency eventually.

[aso118]

We will have to be a little careful here - it is the justice minister who has given this confirmation. In many countries, for taxation purposes, classification of assets could differ. The positive aspect is that there is no doubt about the status of cryptocurrencies (legal / illegal) given this statement by the Justice Minister.

[Jating]

We will have to be a little careful here - it is the justice minister who has given this confirmation. In many countries, for taxation purposes, classification of assets could differ. The positive aspect is that there is no doubt about the status of cryptocurrencies (legal / illegal) given this statement by the Justice Minister.

And maybe the next day we will see other government officials claiming the contrary. That's how Russia is as far as crypto currency is concern and thus we really don't know if they are crypto friendly as they are trying to portray at or just riding the popularity and at the end will put tighter regulations or even the ban hammer.

That's why I don't trust them, well in terms of their release statement. Because in the past it seems that someone will be friendly at crypto and then the next day other big shot Russia government officials claim otherwise.

[vit05]

We will have to be a little careful here - it is the justice minister who has given this confirmation. In many countries, for taxation purposes, classification of assets could differ. The positive aspect is that there is no doubt about the status of cryptocurrencies (legal / illegal) given this statement by the Justice Minister.

Being an understanding of Justice Minister, it shows only an understanding based on the laws that already exist. That is, it is quite likely that new laws regulating and defining exactly what it is and how it should be handled by the state will emerge.

From these laws, I believe it will be clearer the limits that the state imposes on the use.

[BitHodler]

That's why I don't trust them, well in terms of their release statement. Because in the past it seems that someone will be friendly at crypto and then the next day other big shot Russia government officials claim otherwise.

Their statements and actions have always been very contradicting, but this is somewhat different, so there is a little more hope from my side that it at least is a step in the right direction.

I never expect Russia or basically any other country to legally classify Bitcoin as currency. Russia clearly state that it's prohibited by law to use anything other than the Ruble to conduct transactions, so we know their standpoint.

I just hope that the uncertainties there will end for everything related to crypto. Clear regulations are needed to allow businesses to freely develop themselves, but that's currently not possible.

It has been going on for years now, and technically we haven't moved forward at all. This is the perfect opportunity for them to prove that they are actually planning to work out things differently this time.

[Getcoinsite]

A little strange reasoning. Crypto currency is recognized as property, because if it is not done, its theft will not be a criminal offense because there will not be an object of crime. Their ruble is considered primarily money, but also property. Stealing money has always been a criminal offense. Why not immediately recognize the crypto currency as a means of payment, that is, a kind of money? All this creates an opportunity for further manipulation and prohibition of crypto currency.

While lots of russian scammers doing ico's i guess its normal for them to treat crypto as property because they dont even concerned about the technology behind this instead they are just aiming for purely profit,their sucks and i really hate the idea of what they are doing in this forum,for how many times that i joined bounties almost scammers is what ive found,let them have they're own definition of crypto otherwise they dont really care

[Coin-1]

Cryptocurrency falls under the legal category of “other property,” Russia’s Justice Minister Alexander Konovalov told reporters this week. With two draft laws on the matter still pending in the State Duma, he also noted that digital coins should not be considered electronic money, at least on this stage.

Anyway, I think it is a moving in a right direction. A few months ago one plaintiff tried to recover a debt from the Bitcoin and Ethereum holder, but the court recognized the crypto currencies as a "digits". Probably, the next step of the justice will be even a legalization of crypto currencies.

[SectorZero]

We will have to be a little careful here - it is the justice minister who has given this confirmation. In many countries, for taxation purposes, classification of assets could differ. The positive aspect is that there is no doubt about the status of cryptocurrencies (legal / illegal) given this statement by the Justice Minister.

I can say for sure, it is interpreted as : If you have hacked the wallet, it is not property and there is no criminal liability. And if we need to take money from you for debts to the state, then the cryptocurrency is property.
So in Russia all.