Moscow to Grant Russian Bailiffs New Powers in Bankruptcy Cases
Russian bailiffs will soon have increased authority to seize digital rubles and cryptoassets in bankruptcy cases, according to the Ministry of Justice and the Russian Federal Bailiff Service (FSSP). As part of a new plan, bailiffs will be able to use mobile phone geolocation services to locate debtors. They will also have the power to execute “foreclosure” on digital rubles, digital currencies, and digital financial assets. The term “digital currencies” refers to cryptoassets like Bitcoin, while “digital financial assets” encompasses a broader range of digital assets, including tokenized commodities and NFTs.
Additional Powers for Russian Bailiffs
The Ministry of Justice also plans to authorize the sale of seized property through electronic trading. This means that bailiffs may liquidate debtors’ token holdings on crypto exchanges. There have been suggestions for the creation of a state-owned crypto exchange that would oversee such sales, primarily for industrial crypto miners looking to sell coins to overseas buyers. The Central Bank of Russia, which is skeptical about cryptoassets, wants to keep them out of the domestic economy but allows Russian miners to operate freely.
Potential Functions of a State-Run Crypto Trading Platform
In addition to facilitating the sale of tokens by debtors, a state-run crypto trading platform could also support USD-free trade between Russian companies and foreign firms. The Central Bank allows the use of crypto as a payment tool but requires Russian firms to convert their coins into fiat currency promptly. This development follows an announcement from the FSSP director earlier this year that fines can be collected in the form of digital rubles from individuals and legal entities. Recently, Russian arbitration managers in bankruptcy cases claimed that overseas exchanges had cooperated with their requests.
Hot Take: Russian Bailiffs Gain Expanded Powers over CBDCs and Crypto
Russian bailiffs are set to receive new powers allowing them to seize digital rubles and cryptoassets in bankruptcy cases. These additional legal authorities, proposed by the Ministry of Justice and the Russian Federal Bailiff Service (FSSP), include using mobile phone geolocation services to locate debtors and executing foreclosure on digital currencies and financial assets. The term “digital currencies” refers to cryptoassets like Bitcoin, while “digital financial assets” encompasses a broader range of digital assets. Furthermore, the Ministry of Justice plans to authorize the sale of seized property through electronic trading, potentially enabling bailiffs to liquidate debtors’ token holdings on crypto exchanges. This move aligns with Russia’s aim to keep cryptoassets out of its domestic economy but still allow industrial crypto miners to operate freely.
By
By
By
By