France Commercial Court allotted Bitcoin the status of the Fiat Currency


As an outcome of a legal battle between
France’s local Crypto exchange Paymium and an alternative investment startup
BitSpread, the French Commercial Court listed the Bitcoin as a similar
currency.
So, as per the verdict, Bitcoins henceforth
will be seen as legal money in France. Also after this judgment, the loan
contracts will now be having this extra clause about the ownership rights of
the crypto assets created out of hard forking.
Legal Status of Bitcoin same as Fiat
currency
Local media reported that the commercial
court at Nanterre has acknowledged Bitcoin as a fungible intangible asset
similar to fiat currency while hearing the ownership dispute between the two
firms.
While expressing his opinion on the
verdict, one of the special lawyers at Kremer and Levin lawyers Hubert De
Vauplane quoted, “The scope of this decision is substantial because it
distinguishes Bitcoin to be treated like money or other financial instruments.
It will, therefore, facilitate Bitcoin transactions such as lending or repo
transactions that are growing and thus favor the liquidity of the
cryptocurrency market.”
The verdict is an outcome of the dispute
between French cryptocurrency exchange Paymium and alternative asset investment
firm BitSpread. As per the report, Paymium lent 1,000 BTC (over $9.1 million)
to BitSpread in 2014.
The dispute between Paymium and
BitSpread
In 2014 Paymium had loaned the 1000 BTC to
BitSpread. After a Bitcoin hard fork event in 2017, Bitcoin Cash had been
created as a new Altcoin, causing BitSpread to hold an additional 1,000 BCH
worth of $ $350,000. Upon the ownership rights of this additional BCH, dispute had
been ignited between the two parties.
To resolve the dispute, the court had to
redefine the definition of Bitcoin as a fungible asset that certifies Bitcoin
as a consumer loan. As per the French financial laws, this kind of ownership
transfers the ownership rights to the borrower during the term of the loan.
France’s Proactive crypto-favorable
Stance
So far, France has shown a positive
approach, by offering various incentives and rating cryptocurrencies. In 2019,
the government has announced its plans to proper regulatory Framework for ICOs.
It also had removed the taxes on
cryptocurrency transactions to accelerate the cryptocurrency investment. But
simultaneously clear that taxes will be levied to the digital assets turned to
fiat currency.
Furthermore, the financial regulatory of
France The Autorite des Marches Financiers or the French Financial Markets
Authority (AMF) has given the permission and the license to Napoleon Asset
Management, to launch the first regulated Bitcoin fund.
Classification of Cryptocurrencies
across the world
There is a difference of opinion about the
classification of crypto assets across the globe whether they should fall under
currency commodities or securities. Various countries are clarifying their
legal stand about the categorization of crypto-assets to mitigate this
confusion and ambiguity.
Japan is the front runner in legalizing the
Bitcoin (BTC) as a fiat currency in May 2016. Recently Wyoming State of the
United States has passed a ruling which recognizes cryptocurrencies as money.
In July 2019, Bitcoin was legalized as digital property by the Chinese court in
China.
#Bitcoin #cryptocurrencies #France

Jayashree Ingle
CBW - External Analyst
INDIA