Every minute and every second in the Crypto-verse yields more news than we had ever anticipated when we decided to get into this young industry. News reaching TechNewsLeader.com indicate that there is a landmark case in Russia that has directly classified Bitcoin (BTC) and Cryptocurrencies as valid property that is worthy of being declared in a bankruptcy case.
A Ninth Arbitration Court of Appeals in Russia ruled that a bankrupt individual must include Bitcoin in his estate for consideration as possible compensation for those owed money by him or her. The bankruptcy case from October involved Ilya Tsarkov as the defendant and Alexei Leonov as the plaintiff.
In the verdict, the court ordered the defendant to transfer upto 0.2 Bitcoin (BTC) to the plaintiff. Converting to current market rates, we find out that this amount is close to $1,800. Many might wonder if the plaintiff will mind the fluctuating value of BTC when he cashes out or if he will simply HODL. The latter decision might yield more dividend than a rushed sale on the numerous exchanges.
The plaintiff, Mr. Leonov, had this to say about the verdict:
“The court indirectly recognized the cryptocurrency as property and recognized its value.”
The case was first heard in February by a lower court: Moscow’s Arbitration Court. This is after the defendant had disclosed to the plaintiff that he owned a wallet at Blockchain.info. This then led the plaintiff to request the courts to have the holdings in the wallet transferred to him as compensation for what is owed. The court rejected his request prompting Mr. Leonov to seek the opinion of a higher court.
This was a difficult case to rule on in the sense that there is no existing regulation or documentation of cryptocurrencies as assets in the country of Russia. But with a tech savvy Judge, anything is possible. Judges are sometimes well informed on these issues and could be the key in the future of crypto being recorgnized as assets and separate from securities.
Both Ripple and Ethereum are in a fight for their identity with the SEC trying to deliberate on whether the two cryptocurrencies are securities.[Photo source, news.bitcoin.com]