Bitcoin is Gaining Legitimacy in Europe as Dutch Court Deems it Transferable Value
Earlier this week, a Dutch court explained bitcoin as a transferable value in a case that requested Koinz Trading BV to cover mining proceeds worth $5,000 or 0.591.
The court explicitly stated that property rights apply to bitcoin, given that as a cryptocurrency, it is able to transfer value in a peer-to-peer method. The court went on to say that the cryptocurrency is a legitimate transferable value.
«Bitcoin exists, according to the court, from an unique, digitally encrypted collection of numbers and letters stored on the hard drive of the right-holder's computer. Bitcoin is 'delivered' by sending bitcoins from one wallet to another pocket. Bitcoins are stand-alone value documents, which are delivered directly to the payee by the payer in the event of a payment. It follows that a Bitcoin represents a value and is transferable. A claim for payment in Bitcoin is therefore to be considered a claim that qualifies for verification,» the court document translated by Cointelegraph read.
In the US, cryptocurrencies are considered as commodities, at least by the US Commodities and Futures Trading Commission (CFTC). In Japan, the government acknowledged cryptocurrencies as a legal money, allowing citizens and businesses to utilize cryptocurrencies to send and receive money. In the Philippines, cryptocurrencies are seen as a remittance method, that provides an efficient method for transaction settlement.
Normally, while cryptocurrencies as a whole are considered as different types of assets or money, most governments consider legitimate them. The Dutch court, if it had determined cryptocurrencies was not a legitimate transferable value, it would have asked the company to pay the proceeds in Euros. However, that was not the case, as the court specifically ordered the company to pay 0.591 bitcoin to the petitioner.
In many areas, the legality of bitcoin still remains unclear. In India for instance, the government has offered no additional information apart from an ambiguous message which bitcoin is neither legal or illegal. Consequently, businesses have integrated their own Know Your Client (KYC) and Anti-Money Laundering (AML) systems, to stay compliant with the nation's existing regulations on financial companies, which can highly costly and impractical.
However, in Europe, at least within the EU, bitcoin is regarded as an asset and a transferable value. In the recent G20 Summit, an international forum engaged by the 20 leading economies of the world, global financial watchdog Financial Stability Board (FSB) emphasized that cryptocurrencies like bitcoin are considered assets, and they do not pose threat to the stability of the global financial industry.
«The FSB's initial assessment is that crypto-assets don't pose risks to global financial stability at this time. The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets were to become significantly more broadly used or connected with the heart of the regulated financial system,» read the statement of the FSB.
Conclusively, if the global cryptocurrency marketplace and businesses within it continue to function as a strictly regulated market with compliant companies, cryptocurrencies such as bitcoin will always be regarded as legitimate assets.