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June 5, 2018

A city court in St. Petersburg, Russia has overturned the District Court’s decision to ban the crypto-related website bitcoininfo.ru. Media was blocked for "undermining the constitutional order". According to bitcoininfo.ru representatives, they were denied the appeal for two years.

Why it is important

  1. In January 2014, Russia adopted amendments to the law "On Information". The state has the right to block web sources without warning and judicial decision. However, the authorities have the right to resort to this measure only in case of threat of terrorism or mass riots.
  2. In 2018, the state's relations with the cryptosector are changing. At the decision of Vladimir Putin, the consideration of the legalization of cryptocurrencies began. On May 22, the Russian State Duma approved the bill "On Digital Financial Assets" in the first reading.

Cryptocurrencies in Russia were considered illegal in 2016. The dissemination of information about it could be punished. The prosecutor's office was ordered to block bitcoininfo.ru, since the cryptocurrencies are “outside of government control,” “facilitate growth of the shadow economy,” and “do not have specific consumer properties.”

The court ruled that bitcoininfo.ru violates the "Law on the Central Bank" and "undermines the constitutional order and authority" of Russia. Vyborg district court of St. Petersburg considered the case in the absence of website representatives. Then the St. Petersburg City Court denied media in consideration of the complaints. Only now, Russia's Supreme Court ordered the City Court to reconsider the decision.

"The St. Petersburg City Court quashed the decision of the district court to recognize the information posted on the Bitcoininfo.ru website," the press service of the court reports.

Sargis Darbinyan, representative of the owner of bitcoininfo.com, believes that this is the standard practice of the local prosecutor's office, which blocked about 100 sources related to cryptocurrencies. Darbinyan states that law enforcement agencies do not make websites that demand that information be removed, and the courts then refuse to consider appeals.

By Ekaterina Ulyanova

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