A Russian court ordered Sberbank to restore access to a Bitcoin trader’s account. The largest bank in Russia should not have stopped the account, according to the authorities, because the client had submitted all of the relevant information about his cryptocurrency transactions.
Sberbank, popularly known as Sber, has been ordered by the Sverdlovsk Regional Court in Yekaterinburg to unblock account services for a client who has been dealing with Bitcoin (BTC). The customer’s name is Pavel R., and he lives in the little town of Revda, according to the information.
The man’s account was active between May and August of last year, according to the Russian court, and he was also performing various transactions related to cryptocurrency platforms. Sber, on the other hand, disabled his card in August, allegedly because he was involved in money laundering and other criminal activities.
Although submitting all required documentation and explaining the source of finances as well as the significance of his initiatives, Russia’s leading bank refused to reinstate the man’s services. Pavel R. thereafter filed a claim and provided proof of his transactions once more. He went on to accuse Sber of infringing on his customer rights.
Following the procedure, the court in Yekaterinburg determined that the bank had no jurisdiction to block Pavel’s card because his financial transactions were legal. As a result, Sber is required to unblock the account and pay the client’s legal fees.
The country proceeded to define cryptocurrencies in the new legislation after giving them legal status in 2020 but not accepting them as legal money. The bill, which was introduced by the Ministry of Finance in mid-November, includes provisions that would control the circulation and possession of cryptocurrency as well as specify liability for violations of the bill’s standards.
It’s a victory for cryptocurrencies, which are now subject to regulatory uncertainties in the country. Russia’s present legislation, for example, do not recognise Bitcoin and other cryptocurrencies as a means of payment and prohibit state officials in sensitive positions from having them, owing to the country’s strong worries about the use of cryptocurrencies in money laundering.