Converting Bitcoin for Russian Ruble to Be Considered Money Laundering


28 Jun 2023 11:39 AM

Russia's Supreme Court overturned a decision by an earlier court to acquit a defendant of crypto-related money-laundering charges....

  • The Russian Supreme Court has overturned a previous ruling that converting cryptocurrencies to rubles constitutes money laundering.
  • The ruling was made in a case where a drug manufacturer received payment for narcotics in cryptocurrencies.
  • The court considered the Russian Armed Forces' classification of cryptocurrency as a crime subject under the Criminal Code.
  • The initial court argued that the defendant was innocent of money laundering because they converted the funds without introducing them into circulation.
  • However, Article 174.1 states that attempting to give a lawful appearance to criminal funds is sufficient for guilt.
  • The prosecutor argued that the acceptance of Bitcoin as payment for drugs indicated an intention to avoid detection.
  • Russian law recognizes cryptocurrencies as a means of payment and property, but conversion into fiat for further circulation may warrant investigation.
  • It will take time to fully understand judicial practices related to the criminal use of cryptocurrencies.

The sentiment of the article is neutral. It provides information about the Russian Supreme Court's ruling on converting cryptocurrencies to rubles and the implications for money laundering.

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