A French commercial court has just classified Bitcoin (BTC) as the currency in a recent experiment.
According to local news newspaper Les Echos reporting On March 5, the Commercial Court of Nanterre issued a ruling on Feb. 26 to see Bitcoin as an interchangeable asset that cannot be personalized, much like fiat currency. .
The ruling was part of a dispute between French crypto exchange Paymium and the alternative asset investment firm BitSpread. According to the report, Paymium lent BitSpread 1,000 BTC (over $ 9.1 million at the time of writing) in 2014.
After receiving this 1,000 BTC, BitSpread also received 1,000 Bitcoin Cash (BCH) when the Bitcoin hard fork was implemented in 2017 to spawn BCH. Currently, the two sides are in dispute for the rights of BCH worth over 350,000 USD at the time of writing.
In order to handle the case, the court must address the legal nature of Bitcoin, and after determining that this is an alternative asset, the court has determined this Bitcoin loan is a consumer loan. This type of loan transfers ownership of the property to the borrower for the life of the loan.
The ruling is important for the growing field of crypto lending
Therefore, the court found that Bitcoin Cash belonged to the borrower the same as dividends belonging to shareholders. Aspects from the dispute suggest that, due to a court decision, future crypto lending contracts may include a condition for the return of assets generated from the fork.
Hubert de Vauplane – a specialized lawyer at law firm Kramer & Levin, explained that the court's decision could have a big impact:
"The scope of this decision is significant because it allows Bitcoin to be treated like money or other financial instruments. Therefore, it will facilitate Bitcoin transactions, such as lending or repo transactions – which are growing, and thus, benefit the liquidity of the cryptocurrency market. "
Confused in classifying the legality of cryptocurrencies
As Toiyeubitcoin explained in a recent analysis, there is much debate about the legality of cryptocurrency assets, when many argue that they are money, commodities, securities or utility tokens. However, official sources from different countries around the world have shed some light on this issue.
Japan was one of the first countries to clarify the legality of Bitcoin. In early May 2016, this Asian country officially recognized Bitcoin and other digital currencies as money. About a year ago, the United States of America passed a bill that would recognize cryptocurrencies as money.
In July 2019, Bitcoin was legally recognized by a Chinese court, whereby the court concluded that cryptocurrencies should be considered digital assets.
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According to CoinTelegraph
Translated by ToiYeuBitcoin