Chicago Business Litigation Lawyer Blog
Bitcoin is a cryptocurrency which is an electronic form of cash. It is decentralized without the need for a central bank or administrator. The need for an intermediary is none, as it can be sent
from user-to-user. Since its technology is relatively new, litigation surrounding this type of exchange is being closely followed by those who have invested in it and those who are wanting
to know of the direction of the future in exchange. Of course, it would not be long until the way transactions took place would be tested in the courts on an international and local level.
Since its reach has no real boundaries, we will look to a decision held in Shenzhen, China. A ruling was made involving the dispute over an equity transfer case. The matter then went before
the International Court of Arbitration. The currencies that the case concerned included: Bitcoin, Bitcoin Cash, and Bitcoin Diamond. There was so much of a buzz that the decision generated
that the Cryptocurrency news provider posted:
“Chinese court confirms Bitcoin protected by law. Shenzhen Court of International Arbitration ruled a case involving cryptos. Inside the verdict: CN law does not forbid owning & transferring bitcoin, which should be protected by law bc its property nature and economic value.”
The case, therefore, has reached to affect property and economic rights as viewed by the law. How it affects us here in the USA is yet to be seen. The decision applied followed a ruling held
in Moscow. The very classification of Bitcoin and other digital currencies as “property” could even lead to tax implications. Let’s remember this: Bitcoin and cryptocurrencies are not
considered currencies, and are not backed by the government or law. However, they are not illegal. That is the backdrop that is being worked within the dealing with the relatively new medium
of exchange. Basically, the ruling means that there is no prohibition against Bitcoin ownership and transfer in China. Continue reading ›