Court Ruling Endangers Russia’s 17 Cryptocurrency Exchanges

Court Ruling Endangers Russia's 17 Cryptocurrency Exchanges
  • Russia’s cryptocurrency exchange is currently in its nascent stages.
  • Roskomsvoboda maintains a list of prohibited Russian websites.
  • The district judge noted that there are no prohibitions on their transfer.

Russia’s cryptocurrency exchange is currently in its nascent stages as it assesses its regulation position on different facets of the investment class. Due to the country’s legislative environment, Bitcoin or other crypto assets not accepted as a mode of payment in Russia like in other countries. Cryptocurrency ownership is also illegal for anyone working in only specific positions in government. 

Moreover, several websites offering opportunities to trade, payout, and transfer bitcoin using different payment methods may prohibited by Russia’s telecom regulator, Roskomnadzor. A court decision that classifies their material as illegal poses a threat to online crypto marketplaces.

Decision of the Court

According to Forklog, the Kushnarenkovsky District Court in Bashkortostan, a republic of the Russian Federation, declared in September whether the material they are sharing is illegal under existing legislation. More so, the non-governmental organization Roskomsvoboda maintains a list of prohibited Russian websites, including 17 websites.

The regional CourtCourt states in its finding that in all of those cases, the networks provided free accessibility without needing registration. Every user can familiarise themselves with the contents and replicate the material in electronic form. The district judge noted that there are no prohibitions on their transfer, copying, or distribution.

 Digital Rights Council’s lawyers presently drafting complaints filed to get the Court’sCourt’s decision completely overturned. Furthermore, the government did not go down the road of outright banning cryptocurrencies but instead limited the possibilities and their use and criminal justice turnover, Darbinyan said.

This is a major decision and has affected the market significantly.

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