“Wrong bees”: a district court in Bashkiria blocked the sites of 17 cryptocurrency exchangers

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On October 6, 2021, the decision of the Kushnarenkovsky District Court of the Republic of Bashkortostan to block access to the websites of 17 cryptocurrency exchangers came into force.

The District Court, located in the Bashkir village of Kushnarenkovo, during one court session on September 02, 2021,
accepted the decision to block access to the websites of 17 cryptocurrency exchange services with the wording: “in defense of the interests of the Russian Federation and an indefinite circle of persons.” Simply put, in the absence of any complaints and victims.

Group blocking of access was carried out following the results of the prosecutor’s inspection of the implementation of the legislation “on information, information technology and information protection, as well as legislation governing legal relations in the field of cash flow.”

The list of exchange offices blocked by the decision of the next district court can be found on the website
Roskomsvoboda… What is immediately noticeable when looking at the list of blocked pages – almost all of them belong to one of the types of exchange – BTC for rubles in Sberbank. It seems that the Bashkir prosecutors just went to one of the cryptocurrency exchange aggregators, for example, Bestchange, and went through the list from top to bottom, as long as they had enough patience. The “surviving” exchangers can only be glad that they set a less favorable rate for this time, and the prosecutor’s office employee who collected information does not like to click on links too much.

Immediately after the blocking, some of the exchangers have already started creating “mirrors”, so their work will be slowed down for a short time.

Blocking decision

According to the materials of the Kushnarenkovsky court, “during the monitoring of the Internet through public search engines, the availability of resources was established, upon switching to which information was posted on the possibility of anonymous exchange, cashing, transfer of funds, as well as cryptocurrencies, using electronic payment systems.”

“Entry to the Internet resource is free, registration of users for access is not required. Any user can get acquainted with the content and copy the materials in electronic form. There are no restrictions on their transfer, copying and distribution, ”the court ruling says.

The legal foundations of the monetary system of the Russian Federation and its functioning are determined by the Federal Law of 10.07.2002 No. 86-FZ “On the Central Bank of the Russian Federation (Bank of Russia”), which establishes a ban on the receipt of funds by cashing them using foreign payment systems, without entering your personal data, on condition of anonymity.

The court came to the opinion that in accordance with Art. 12 of the Civil Code of the Russian Federation, the way to protect civil rights, in particular, to suppress actions that violate the right or create a threat of its violation by citizens of the Russian Federation, will be blocking the sites of crypto-exchange companies and their inclusion in the “Unified Register of Domain Names … containing information, the distribution of which on the territory of the Russian Federation is prohibited. “

Cryptocurrency exchange offices, according to the court from Bashkortostan, are “wrong bees” and their work is illegal. However, after the Bank of Russia ranked cryptocurrency exchangers as potential sources of dubious transactions, the district courts in the hunt for “prohibited” cryptocurrency services may feel much freer.

History of the issue

The judicial system of the Russian Federation does not protect the interests of persons investing or using cryptocurrencies due to the lack of a legal framework for regulating cryptocurrencies, and the dissemination of information via the Internet containing advertising of services and services related to cryptocurrencies, sooner or later, may lead to sanctions by regulators. Meetings are held without notification or summoning the defendant to court, and decisions are made according to a previously agreed standard scenario.

Cryptocurrency exchanges, as was the case with EXMO, Localbitcoins, Btc-e and Vitstamp, fell under the blocking on the basis of a court decision. Cryptocurrency media, which tell users about the news and technologies of the cryptoindustry, as happened with Bits.media, Cointelegraph and Coinspot, also do not ignore the courts.

However, it would be wrong to paint the future of the crypto industry with only dark colors. The cryptocurrency community consistently communicates its point of view and achieves understanding from regulators and the judiciary. Almost all decisions to block cryptocurrency sites, the owners of which appealed to higher courts, have been overturned.

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