Cryptocurrencies “do not pose risks to global financial stability” – as expressed by Mark Carney of G20’s Financial Stability Board. However despite that fact, they remain largely unregulated.
A Dutch court just made yet another step towards recognising cryptocurrency as… well, currency.
In a court document published on 20th of March, Dutch court classified Bitcoin as “transferable value”. The ruling was in favour of a plaintiff, who was owed 0.591 Bitcoins (BTC).
The original claim was filed on the 2nd February 2018 by Mr. J.W. de Vries against Koinz Trading BV. The company was previously ordered by a lower Midden-Nederland court to pay mining earnings of 0.591BTC owed to the petitioner. Failure to do so, carried a penalty of maximum €10,000.
Since the company failed to comply, the court ordered it to either pay up or be declared insolvent.
The court stated that:
“Bitcoin exists, according to the court, from a unique, digitally encrypted series 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 wallet. Bitcoins are stand-alone value files, 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. In the court’s view, it thus shows characteristics of a property right. A claim for payment in Bitcoin is therefore to be regarded as a claim that qualifies for verification.”
According to the court, since the obligations were taken in BTC, the repayment should also be processed in the same currency.