Russia Acknowledge Bitcoin as Property with Legal Protection

Bob Coiney

November 30, 2020

Russia recognizes Bitcoin as a property; however, it proposes legal protection for it. The Prime Minister of Russia has said that their government has acknowledged cryptocurrency and plan on amending the laws for being able to use it as property. 

A news article on Bitcoin News confirmed that Russia recognizes Bitcoin as a property provided, it came with legal protection. On Thursday, Prime Minister Mikhail Mishustin said that the government wants to take measures to fight the coronavirus pandemic.

Additionally, they want to come up with a solution for cryptocurrency. The Prime Minister said that, since it is a “relatively new tool,” there is constant growth among the masses. Bitcoin News had tweeted about this development. 

He also mentioned they plan on “the development in the market,” enabling the cryptocurrency owners to be able to exercise their rights. They can also protect the bitcoin, if they have some kind of protection. 

That is because creating “shadow schemes” is not an option. The government plans on changing the tax code. Financial assets in digital form have to be recognized as property. Owners can get legal protection if there are actions on them. 

They can also have the property rights in court. However, it is yet to be made official. The courts in Russia have to make decisions on treating bitcoin as a property that can be taxed. This comes as a Russian court denied the return of cryptocurrencies to a Russian owner in July. 

The judge said that because bitcoin was not considered as a legally owned property in the Russian law, the stolen cryptocurrency is not a theft. 

According to a news article on Sharecaster Russia will start regulating the crypto market next year. Vladimir Putin, the President, has signed a new bill in August. The Ministry of Finance, in November, designed amendments to the crypto laws.

Meanwhile, the new laws are calling for strict punishment for unreported cryptocurrencies. The Bank of Russia wants public comments on the central bank’s digital currency, which is the digital ruble. 

It only means bitcoin owners now have the right to defend cryptocurrencies in court and can get them back if stolen.