Russian courts are increasingly dealing with cases involving cryptocurrency — but they’re not always ready to protect the rights of crypto holders. As it turns out, before making any demands through the courts, you need to take care of one important condition in advance.
Spoiler: You’ll have to play nice with the tax authorities.
Spoiler: You’ll have to play nice with the tax authorities.
Judicial Protection Only for the “Law-Abiding”
According to Clause 6, Article 14 of the Federal Law “On Digital Financial Assets” (No. 259-FZ dated July 31, 2020), the protection of cryptocurrency holders' rights in court is only possible if they have notified the tax authorities of their ownership and operations with digital assets (cryptocurrency).
In practice, this means that if you get into a legal dispute involving cryptocurrency but failed to report it to the tax office, the court may deny your claim. And that’s already happening.
According to Clause 6, Article 14 of the Federal Law “On Digital Financial Assets” (No. 259-FZ dated July 31, 2020), the protection of cryptocurrency holders' rights in court is only possible if they have notified the tax authorities of their ownership and operations with digital assets (cryptocurrency).
In practice, this means that if you get into a legal dispute involving cryptocurrency but failed to report it to the tax office, the court may deny your claim. And that’s already happening.
Court Precedents: Claims Denied for Lack of Notification
- Moscow City Court Appeal Ruling of 06.06.2024, Case No. 33-19434/2024 — claim denied.
- Moscow City Court Ruling of 20.10.2022, Case No. 33-41465/2022 — claim to recover cryptocurrency in trust rejected.
- Savelovsky District Court of Moscow, Case No. 02-2888/2021 — similar dismissal.
Controversial Point: Are the Courts Always Right?
This approach raises questions, especially considering that courts in other countries already recognize cryptocurrency as property — and tax reporting isn’t always a prerequisite for legal protection.
📌 New Zealand: In a case involving the hacked Cryptopia exchange, the court recognized cryptocurrency as property, even though access to the private keys was lost.
📌 Singapore: In Quoine Pte Ltd v. B2C2 Ltd, the court ruled in favor of the plaintiff based on account records on the platform, not on actual possession of the cryptocurrency in a wallet.
So, in other jurisdictions, proving ownership is key. In Russia, it’s proving you’ve reported it to the tax office.
See the difference?
This approach raises questions, especially considering that courts in other countries already recognize cryptocurrency as property — and tax reporting isn’t always a prerequisite for legal protection.
📌 New Zealand: In a case involving the hacked Cryptopia exchange, the court recognized cryptocurrency as property, even though access to the private keys was lost.
📌 Singapore: In Quoine Pte Ltd v. B2C2 Ltd, the court ruled in favor of the plaintiff based on account records on the platform, not on actual possession of the cryptocurrency in a wallet.
So, in other jurisdictions, proving ownership is key. In Russia, it’s proving you’ve reported it to the tax office.
See the difference?
How Can Crypto Holders Protect Their Rights in Russia?
- Report your cryptocurrency to the tax authorities — this gives you the right to seek protection in court.
- Document all transactions and ownership — keep transaction history, screenshots, agreements with counterparties (and maybe a good-luck charm too).
- Consider foreign legal mechanisms — in critical situations, you might explore legal protection in international jurisdictions.