Constitutional Court legalizes cryptocurrency operations
The highest judicial authority concluded that transactions with digital currencies are possible in the Russian legal space. For this, the Federal Tax Service (FTS) has been instructed to develop an appropriate declaration procedure.
This decision removes the legal uncertainty that has existed for several years. The current law provided for judicial protection only on condition of informing tax authorities, but the by-law establishing the rules for such notification was never adopted.
The problem became evident in the case of Muscovite Dmitry Timchenko. He purchased 1,000 USDT tokens for 81.5 thousand rubles (approximately $905 at current rates) and transferred them for a week for investments, but was unable to recover the assets. The courts dismissed his claim, citing precisely the lack of declaration.
Lawyer Marat Amanliev, representing Timchenko«s interests, stated: »All the defendant needs to do is claim in court that the plaintiff did not notify the state of possessing it. This encourages abuse of rights against digital currency owners.«
During the Constitutional Court hearing, the positions of state bodies diverged. Senator Andrey Klishas acknowledged the legal uncertainty, while the presidential envoy Dmitry Mezentsev noted that when cryptocurrency is legally acquired, there is no obligation to notify the tax service.
Mikhail Barshchevsky, on behalf of the government, confirmed that digital currency is recognized as property but has a virtual nature, which complicates regulation.
In its ruling, the Constitutional Court indicated that digital currency cannot be classified as traditional types of property. The state has the right to establish special accounting for such assets since they can be used for shadow operations.
At the same time, the court recognized that the absence of an established procedure for informing the Federal Tax Service violates the constitutional rights of owners. The legislator is instructed to eliminate this gap.
Until amendments are made, owners of digital currencies have the right to protect their interests in court by presenting any evidence of lawful acquisition and use of assets.
Market experts positively assessed the verdict. Partner of the law firm Lidings Dmitry Kirillov noted: «Russia»s Constitutional Court has protected crypto investors, including Bitcoin owners. Now they can defend their rights in courts without declaring the acquired digital currency.«
Earlier, the Ministry of Finance was developing a bill obliging the declaration of cryptocurrency with an annual turnover of over 600 thousand rubles (approximately $6,700 at current rates), with a 10% penalty for evasion. However, this provision was excluded from the final version, which led to the legal vacuum.
Separately, during the discussion, the issue of the status of stablecoins, such as USDT, was raised. Deputy Chairman of the Bank of Russia Alexey Guznov explained that they can be used as a means of exchange but are not legal tender.
In August 2024, the concept of «foreign digital rights» appeared in legislation, adding complexity to classification. The bill on legalizing gold stablecoins for foreign trade settlements, introduced two years ago, has still not been considered.
