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.

Jayashree Ingle
CBW - External Analyst
INDIA