The Russian Constitutional Court ruled that crypto assets are subject to property rights rules, and the rights of holders were judicially confirmed.

The Russian Constitutional Court recently ruled that crypto assets fall under the category of property protected by property rights, a ruling considered to have a profound impact on future civil and criminal disputes involving crypto assets. Ignat Likhunov, head of the Russian law firm Cartesius, stated that the ruling provides clear legal grounds for law enforcement agencies and courts in handling stolen or disputed digital assets, and establishes an important precedent. The ruling also clarifies that as long as crypto assets are legally acquired, their property rights should be protected even if they are not declared to tax authorities. This case stemmed from a civil lawsuit filed by Moscow resident Dmitry Timchenko. In 2023, Timchenko lent 1,000 USDT to someone, but the lender failed to return it as agreed. Previously, a lower court dismissed his claim on the grounds that "stablecoins are not within the scope of legislation applicable to digital financial assets." The Constitutional Court pointed out that failure to declare crypto assets does not automatically negate property rights; the relevant declaration obligation only applies to miners. This ruling comes as Russia is pushing forward with a new round of crypto regulatory legislation. Analysts believe that this ruling provides clearer legal protection for cryptocurrency holders before legislation is finalized. (DL News)