crypto recognized as means of payment- The Cryptonomist

In Russia, crypto has been recognized as a means of payment by the St. Petersburg court. For the office of the city prosecutor, the ruling is marked as a precedent. 

Russia: St. Petersburg court recognizes crypto as a means of payment

According to reports, the case of two men convicted of cryptocurrency extortion in Russia has turned into the first precedent-setting ruling in which the St. Petersburg court recognizes crypto as a means of payment. 

Basically, two Russian citizens were sentenced to nine and seven years in prison, under hardship, for extorting 5 million roubles (almost $90,000) in cash and 55 million roubles (almost $1 million) in digital assets from another man.

In order to pass the extortion sentence also on the 55 million roubles in cryptocurrency, the Russian court recognized crypto, marking a precedent-setting first for the city prosecutor’s office. 

This ruling is the result of an appeal of another initial ruling, which stated that cryptocurrency:

“It is not a means of payment on the territory of the Russian Federation, therefore it cannot be recognized as an object of civil rights and a subject of a crime”.

Russia changes its attitude towards cryptocurrencies

Just last week, news emerged that Russia itself could issue the first blockchain-based digital financial assets by the end of this year. 

This was stated by Anatoly Aksakov, head of the State Duma’s Financial Markets Committee, during the Moscow Academic Economic Forum. 

According to the Russian MP, the country has already registered three platforms issuing the first digital assets, which, in general, would mark a first step towards helping the country out of a difficult economic situation, worsened by the depreciation of the rouble. 

And indeed, for many, this news seems to confirm how Russia, which is facing harsh sanctions imposed by the international community due to its invasion of Ukraine, is changing its attitude towards cryptocurrencies. 

Crypto increasingly accepted among the international community

Not only countries like Russia, but also multinationals and luxury giants are increasingly open to accepting crypto as a means of payment. 

Among the latter, Balenciaga has announced that from next month it will accept payments in Bitcoin and Ethereum in some US stores and for online purchases. 

Not only that, but also the famous Swiss luxury watch brand TAG Heuer will accept Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Dogecoin (DOGE) and five other stablecoins as a means of payment in its US stores, thanks to its partnership with Bitpay. 

Gucci and Off-White have also introduced cryptocurrency payments, marking innovation in the payments industry as well as in fashion.