Australian Judge Acknowledges Digital Currencies as a legitimate payment mode
While hearing a defamation case in New South Wales District Court, Judge Judith Gibson acknowledged currency as Security.
During the proceeding, the Australian court has agreed to accept the crypto exchange account as a security to cover the legal expenses. While acknowledging this decision, the court considered the volatile nature of the digital assets and stated crypto assets are a recognized form of investment in the current economic crisis.
Legal proceeding charges to be covered by paying 20,000 AUD worth of cryptos
While hearing a defamation claim, the South Wales district court asked the plaintiff (accusing party) to deposit $20000 AUD (Approx.$13000 USD) in the bank account of the court.
The charged amount will partially cover the defendant's expected legal cost if the plaintiff withdraws from the case or loses the case.
Instead of using a bank account, the court allowed the plaintiff to pay through their cryptocurrency exchange account on their request.
Judge Judith Gibson stated that the court understands the volatile nature of the cryptocurrencies. In her earlier judgment in the last week, she has stated that cryptocurrencies are a recognized form of investment.
When the defendant’s solicitor expressed concerns over the volatile nature of the cryptocurrencies, the court ordered the plaintiff to provide a status report of the account every month to the court.
The court also had asked the solicitor of the plaintiff to inform them if a steep value drop below $20000 happens during the proceedings. The court further warned that breach in the order could lead to contempt of court.
Judge Judith Gibson considered the fluctuating value of the cryptocurrencies and said, “I can see the desirability of the defendant receiving prompt notification of any drop in the value of the account. These are uncertain financial times.”
The court order has validated cryptocurrencies in the eyes of government authorities.
Crypto Assets gaining more acknowledgment and adoption in Australia
Australia has been in a front-row among the nations which are regulating the crypto assets and adopting the blockchain technology rapidly. Since 2017 cryptocurrencies have been treated as property in Australia and are subject to Capital gains Tax.
AUSTRAC, which is a government regulatory agency of Australia uses financial intelligence and regulation to counter money laundering, terrorism financing, etc. from the last two years, it has been working to bring crypto exchanges under surveillance. In the ongoing process, it has registered over 300 cryptocurrency exchanges so far.
Besides trading other cryptocurrency services such as Crypto payments capital gaining popularity the masses.
CBW - External Analyst