USDT stablecoin is not a digital financial asset, as confirmed by the Constitutional Court of Russia

On November 13, the Constitutional Court (CC) ruled that stablecoin does not fall under the definition of a digital financial asset, which frees its users from many legal formalities. The case was filed by Dmitry Timchenko from Moscow, who was unable to return 1000 USDT tokens borrowed under the contract. The court of first instance dismissed his claim due to a legal requirement that requires prior notification of the tax authorities, which, according to the applicant, contradicts the Constitution.

Source Kommersant

The benefactors argued that the requirements for tax notification do not exclude the possibility of judicial protection, but only clarify its procedure. However, the government representative emphasized that stablecoin is a token backed by US dollars and therefore does not meet the criteria of a digital currency. The Constitutional Court took into account that the current legislation does not contain clear rules on reporting digital assets, which complicates law enforcement.

The absence of special regulation of stablecoins may simplify the lives of consumers, but it also carries risks. Experts note that without requirements for issuers, users may face asset freezes or fraud. The Constitutional Court is expected to make a final decision in a closed session soon.