Russian Real Estate Firm Experiments With Selling a Luxury Mansion for Bitcoin

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However, if cryptocurrencies are considered money in Russia, according to the law on foreign exchange operations, a transaction in BTC would not be possible since the only currency permitted in the sale of Russian real estate is the Russian ruble.
The legal section of the Kalinka Group is currently exploring whether the sale of a property for cryptocurrencies is lawful, according to the laws of Russia.

The Russian real estate firm Kalinka Group has announced that once of its clients is selling his luxurious house for bitcoins. The 4200 square foot country mansion is situated in the village of Nikolino, located in a fashionable neighborhood off the Rublevo-Upenskoe highway. According to the Kalinka Group, this is the first time in the history of the Russian real estate market that a client has offered to sell a property for cryptocurrencies.

Published at Tue, 22 Aug 2017 22:01:29 +0000

“The sale of the house in Nikolino will probably become a precedent in the legal clinic and real estate market. We [will] carefully study the world experience of conducting such transactions and understand that cryptocurrencies should be described at the legislative level in the shortest possible time because this innovative method of settlement is already able to impact the money turnover in business,” Rumyantseva said.

She pointed out that Russian law has not yet defined the principles for working with bitcoins, and thus far there isn’t any legal definition of the cryptocurrency. Also, as there isn’t any regulatory or legal framework governing the sale, the agency’s service fees will still be paid in the national currency, rather than in bitcoin.

Kalinka Group recognized that volatility is another issue to consider when property sales are listed and transacted in cryptocurrencies. The real estate company confessed that bitcoin is a lot more volatile in comparison to other currencies, thus, exchanging the payment into rubles can “significantly change the value of the object.”
The real estate firm mentioned China and Switzerland as examples of countries that consider bitcoin to be a tangible asset, which means a transaction is possible under the “barter agreement.”
“Such transactions are still a novelty, even for world real estate markets,” Ekaterina Rumyantseva, the chairman of the board of Kalinka Group, said in a statement. “We are pleased to be pioneers and open new frontiers in business.”

Kalinka Group added that since bitcoin is volatile, the specific value of the designer-furnished mansion – that has an open-air jacuzzi and a movie theater along with many other luxurious features – will have to be determined at the moment of the sale. At the time of the announcement, the house was listed for 3000 BTC.