Civil law risks in the sphere of cryptocurrency turnover
and 5 ways to avoid them
The CFA Law prohibits the use of cryptocurrency as a means of payment for goods, works, services. This requirement applies only to tax residents of the Russian Federation.
However, the ban on the dissemination of information about the offer or acceptance of digital currency as a means of payment already applies to all individuals and legal entities, as well as authorities.
There is also a restriction on the judicial protection of the rights to own a digital currency, which is possible in case if you provide information about the facts of owning it and making civil transactions with it in accordance with tax legislation.
To date, there is no indication in Russian legislation on the way to inform tax authorities, as well as on penalties or other sanctions for violating the listed requirements of the law.
Thus, the following civil law risks remain:
· potential deprivation of the right to judicial protection from the moment when the authority to which it is necessary to provide information about the possession of digital currency, the form, and threshold of notification is clearly defined;
· non-fulfillment of civil obligations in accordance with the concluded contracts;
· bankruptcy. A legal entity can be declared bankrupt if the unfulfilled claims against it collectively amount to at least 300 thousand rubles, to a debtor-citizen – at least 500 thousand rubles and have not been fulfilled for more than 3 months. Although, it can be declared in some cases regardless of the amount of debt.
5 ways to overcome risks:
· The legislator plans to amend the Tax Code of the Russian Federation, according to which it will be mandatory to inform the tax authorities about obtaining the right to dispose of digital currency in the event that the amount of receipts or write-offs of digital currency exceeds the amount equivalent to 600 thousand rubles for a calendar year. If it becomes mandatory, then it is worth clarifying the amount of digital currency received and debited from your crypto wallet by April 30, 2022.
· Apply procedures that help to prove your good faith when making a transaction. As for cryptocurrencies, they are KYC/KYT/AML.
· Take measures to resolve controversial issues of a civil nature in a pre-trial manner, as the courts today have a positive attitude to the imposition of restrictions and blocking of cryptocurrencies in the course of legal proceedings.
· Prevent the accumulation of overdue debt over 300 or 500 thousand rubles.
· Involve lawyers for the most effective resolution of disputes.
However, the ban on the dissemination of information about the offer or acceptance of digital currency as a means of payment already applies to all individuals and legal entities, as well as authorities.
There is also a restriction on the judicial protection of the rights to own a digital currency, which is possible in case if you provide information about the facts of owning it and making civil transactions with it in accordance with tax legislation.
To date, there is no indication in Russian legislation on the way to inform tax authorities, as well as on penalties or other sanctions for violating the listed requirements of the law.
Thus, the following civil law risks remain:
· potential deprivation of the right to judicial protection from the moment when the authority to which it is necessary to provide information about the possession of digital currency, the form, and threshold of notification is clearly defined;
· non-fulfillment of civil obligations in accordance with the concluded contracts;
· bankruptcy. A legal entity can be declared bankrupt if the unfulfilled claims against it collectively amount to at least 300 thousand rubles, to a debtor-citizen – at least 500 thousand rubles and have not been fulfilled for more than 3 months. Although, it can be declared in some cases regardless of the amount of debt.
5 ways to overcome risks:
· The legislator plans to amend the Tax Code of the Russian Federation, according to which it will be mandatory to inform the tax authorities about obtaining the right to dispose of digital currency in the event that the amount of receipts or write-offs of digital currency exceeds the amount equivalent to 600 thousand rubles for a calendar year. If it becomes mandatory, then it is worth clarifying the amount of digital currency received and debited from your crypto wallet by April 30, 2022.
· Apply procedures that help to prove your good faith when making a transaction. As for cryptocurrencies, they are KYC/KYT/AML.
· Take measures to resolve controversial issues of a civil nature in a pre-trial manner, as the courts today have a positive attitude to the imposition of restrictions and blocking of cryptocurrencies in the course of legal proceedings.
· Prevent the accumulation of overdue debt over 300 or 500 thousand rubles.
· Involve lawyers for the most effective resolution of disputes.
