Bitcoins in USA were considered real property (Topic)

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Bitcoins in USA were considered real property


The Moscow Arbitration Court issued an unusual decision regarding the cryptocurrency. It can be considered a precedent, and in the future it may change the status of digital money in USA.

New virtual money qualification

May 7, 2018 following the court hearing, the cryptocurrency was identified as a property, considered as an asset of the debtor in the bankruptcy case. As a result, the owner of the digital wallet must transfer the right to access it, and the content must be implemented to pay off his debts to the creditor. Such a solution will require some technical training on the part of the collection service.

In USA, bitcoins, altcoins and other types of digital finance do not have a specific status. Prior to this, the national courts did not qualify them as one of the officially existing types of property, and even more so as money. The basis for such a "legal float" in the definition of cryptocurrency is the lack of a legal regulatory framework.

For example, at one of the court sessions two years ago, lawyers ruled that digital money is not considered an object of the physical world and does not objectively exist in the tangible material plane. The prepared draft law "On digital financial assets" defines virtual finance as "property in electronic form", but so far this document has not been considered.

First no, then yes

The litigation, according to which the cryptocurrency began to approach the "material manifestation", occurred between the entrepreneur Ilya Tsarkov and financial manager Alexei Leonov, who is the plaintiff in this case.

The first judgment, issued in February 2018, denied the plaintiff to consider the defendant's digital wallet on the platform as one of the means of payment of his debt. The court considered that the cryptocurrency is out of the legal field. Since in fact it represents an intangible set of symbols and initially exists in electronic form, and is not deposited into an account from the outside, it cannot be considered real money.

The debt collector was able to challenge the original court decision, stating that the digital wallet belongs to the defendant, and the debtor does not deny this fact. And although there were no changes in the legal framework, the re-examination of the case led to the opposite decision, recognizing the cryptocurrency as a property asset. The digital wallet will be included in the list of objects transferred to the financial manager for subsequent implementation, however, the question of how to do this technically remains open.

It turns out that the position of the cryptocurrency may gradually change, since the latest court decision actually determined it to be a really existing liquid object that can be exchanged for real money.

According to experts, the implementation of bitcoins as part of the execution of this case may not only be delayed in time, but also face certain problems. For example, at the time of withdrawal of virtual assets, their value can change many times, therefore, the actual issue is the creation of a technology for selling cryptocurrency at a fixed rate.

The Topic of Article: Bitcoins in USA were considered real property.
Author: Jake Pinkman