Sverdlovsk Court Orders Sber To Reopen Bitcoin Transaction Accounts

Sber must not be a client account associated with Bitcoin. (photo: unsplash)

JAKARTA- The state of cryptocurrency regulation in Russia has taken another twist as local courts have ordered the country's largest bank to resume account support for Bitcoin (BTC) traders.

The Sverdlovsk regional court, the court in Russia's fourth-largest city Yekaterinburg, has ordered Sber, formerly known as Sberbank, to unblock account services to clients involved in Bitcoin trading, according to an official announcement on Monday, August 2. The client's bank account processed several transactions related to trading on cryptocurrency exchanges from May to August 2020.

Sber blocked these individuals from accessing their bank accounts, citing suspicious transaction activity and Anti-Money Laundering policies. The bank also refused to resume services after clients attempted to regain access to their accounts by providing detailed information about their Bitcoin trades on the crypto trading platform.

The client then filed a complaint with the city court and a subsequent appeal to the Sverdlovsk regional court, accusing Sber of violating consumer rights.

According to a recent ruling by the Sverdlovsk regional court, Sber had no reason to continue to block account services and restrict customer access to remote banking and bank cards after the client "disclosed the economic significance of the transaction and indicated the source of the funds."

The court ruled that Sber should unblock the client's bank card and resume remote banking services, also ordering the bank to reimburse the customer's legal fees. The court still dismissed the client's claim for moral damages, noting that the plaintiff "did not use his bank accounts and cards for the purpose of providing possible compensation for moral damages in connection with property rights violations."

Sber is a state-owned Russian bank and the country's largest banking institution. The bank is known to support a negative attitude towards Bitcoin, with CEO Herman Gref arguing that cryptocurrencies like BTC are the riskiest type of investment next to the equity market.

Sber's criticism of Bitcoin is in line with the anti-crypto stance by Russia's central bank, which has reportedly been holding back local banks from offering crypto services.