Russian Court Denies Protection Due to Lack of Cryptocurrency Notification

Russian courts are rejecting cases related to cryptocurrencies if the plaintiff has not informed the Federal Tax Service about owning these assets. This was reported by RBC, citing lawyer Marat Amanliev.

His client encountered this issue while attempting to reclaim digital currency from an acquaintance. All judicial instances dismissed the lawsuit, citing the provisions of the law on “Digital Financial Assets”.

However, the procedure for such notification has yet to be approved.

According to the lawyer, a paradox arises: one cannot seek protection in court because there is no form to submit.

“Consequently, compliance with such a requirement is impossible, which makes the realization of the right to judicial protection impossible. It should be noted that the right to judicial protection cannot be limited under any circumstances,” Amanliev noted.

He also pointed out violations of the provisions on equality before the law and the inviolability of property.

The legal advocate has appealed to the Constitutional Court with a complaint about the “Digital Financial Assets” law, and his appeal has been registered. The date for consideration has not yet been set.

“We ask the Constitutional Court to recognize the provision as unconstitutional and confirm that the right to judicial protection cannot depend on the fulfillment of administrative formalities, especially when it is impossible to fulfill them,” Amanliev emphasized.

In May 2024, the Supreme Court of the Russian Federation required verification of bitcoin wallet ownership when considering cases.

In June 2023, the Supreme Court recognized the conversion of bitcoins into rubles as money laundering.