The Russian Constitutional Court ruled that the rules of property rights apply to cryptocurrency assets, and the rights of holders are confirmed by the judiciary

The Russian Constitutional Court recently ruled that cryptocurrency assets fall under the category of property protected by property rights, a decision that is expected to have far-reaching implications for future civil disputes and criminal cases involving cryptocurrency assets.

Ignat Likhunov, head of the Russian law firm Cartesius, stated that this ruling provides clear legal grounds for law enforcement agencies and courts when dealing with issues related to stolen or disputed digital assets, and establishes an important precedent. The ruling also clarifies that as long as cryptocurrency assets are legally obtained, their property rights should be protected by the judiciary, even if they have not been declared to tax authorities.

The case originated from a civil lawsuit filed by Moscow resident Dmitry Timchenko. In 2023, Timchenko lent 1,000 USDT to another party, but the latter failed to return it as agreed. A lower court had previously dismissed his claim on the grounds that "stablecoins are not within the scope of digital financial asset legislation." The Constitutional Court pointed out that failing to declare cryptocurrency assets does not automatically negate property rights, and the relevant declaration obligations only apply to miners.

As this ruling comes into effect, Russia is advancing a new round of cryptocurrency regulatory legislation. Analysts believe that this judgment provides clearer judicial protection for cryptocurrency holders before the legislation is completed.