Australian court allowed cryptocurrency usage as collateral.

Mttewndew

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Quote from: hugeblack on March 03, 2020, 05:33:11 AM

I don’t know how Australian law deals with the definition of the word collateral, but in my country “and in most of the countries that I know” collateral is something that has a material value and can be used in exchange for paper money and is not required to represent cash but rather any asset, for example cars, real estate or even golf clubs .
Therefore, I do not think that this news represents much. Many countries recognize Bitcoin (cryptos) as an asset or a commodity, not money.

Nevertheless, do you know a lot of recorded cases when such events took place? Cases when bitcoin was taken as collateral.

hugeblack

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I don’t know how Australian law deals with the definition of the word collateral, but in my country “and in most of the countries that I know” collateral is something that has a material value and can be used in exchange for paper money and is not required to represent cash but rather any asset, for example cars, real estate or even golf clubs .
Therefore, I do not think that this news represents much. Many countries recognize Bitcoin (cryptos) as an asset or a commodity, not money.

Youghoor

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Though this is not what we really expect but at least it shows some positive attention from the side of the government and i think it's good. So Australia now recognizes it as an asset hence it can be used as collateral representing value. I think in the near future we might see some more countries legalizing bitcoin as a currency and an asset.

Swordsoffreedom

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People are slowly starting to realize the worth of bitcoin. We have already seen that many governments are attempt to ban bitcoin or the usage of it, but on the other hand, many of them are legalizing it, which is a good sign.

tippytoes

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Quote from: samcrypto on March 02, 2020, 05:40:03 PM

Another great country that slowly support cryptocurrency, thanks to that court for acknowledging this market. Using crypto accounts as a collateral is also good, but of course we must still wait for further announcement regarding this one. If more countries will legally accept cryptocurrency, then we can easily make a new ATH but things are getting harder everyday, i hope we all survive on many challenges.

We are already a decade in crypto, and I'd say we already have had a lot of accomplishments. Many crypto users are now smarter than before. Because of those proliferating crap projects for the last couple of years, many have learned their lessons already and now, they are more knowledgeable on the real benefits of crypto and blockchain technology. And I believe, those scammers running their IEOs or ICOs are now going down in numbers as a lot of investors are now very careful in their investments.

With such news like what the OP has shared, I guess we are on the right track of adoption. Because if other countries or areas see that this kind of transaction is real and successful, they will follow soon.

samcrypto

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Another great country that slowly support cryptocurrency, thanks to that court for acknowledging this market. Using crypto accounts as a collateral is also good, but of course we must still wait for further announcement regarding this one. If more countries will legally accept cryptocurrency, then we can easily make a new ATH but things are getting harder everyday, i hope we all survive on many challenges.

avikz

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Quote

This is a recognized form of investment

It is a big statement! People associated with legal matters will surely acknowledge this because if a court says something, that stands valid for all other courts across that country!

So it's safe to assume that cryptos are gaining traction within the legal system as well. Because existing and old court cases are often used as a reference on an ongoing case across the world. Good and positive news!

jossiel

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Thank you judge for acknowledging cryptocurrency as an investment.

But I can't speak more about the situation and let us wait until cointelegraph get more info from the court.

Ryker1

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Well, Not a bad one.
Australian Government really is open to cryptocurrencies ever since. The problem is that they do not really accept bitcoin as an asset.
For me, --the Australian Government are taking advantage of the assets stored in the cryptocurrency space. How could I say?
I do not really understand the point for anyone to use their exchange accounts as collateral instead of using it to trade to cash?
Why? Because making it as collateral will lessen the lender's costs and will increase their return of investment since they would only accept the collateral with a minimum appraisal value. Indeed, what an intelligent move right there.

Darker45

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Quote from: Zemomtum on March 01, 2020, 02:47:13 PM

We are getting there gradually, their eyes have begun to open to the reality that cryptocurrencies are legal tender. Instead of a bank account, the court allowed the plaintiff to use their cryptocurrency exchange account. Details here: https://cointelegraph.com/news/australian-judge-says-crypto-is-a-legitimate-investment-vehicle

This is another acknowledgement of cryptocurrency being legal and therefore acceptable. However, nowhere in the article nor in the case most probably is it stated that cryptocurrencies are already accepted as legal tender. That would be another story altogether. This case does not imply that. As the title suggests, this is about cryptocurrency being acknowledged as a "legitimate investment vehicle." In other words, it is more of an asset whose value could rise and fall depending on the market.

Zemomtum

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We are getting there gradually, their eyes have begun to open to the reality that cryptocurrencies are legal tender. Instead of a bank account, the court allowed the plaintiff to use their cryptocurrency exchange account. Details here: https://cointelegraph.com/news/australian-judge-says-crypto-is-a-legitimate-investment-vehicle

Topic: Australian court allowed cryptocurrency usage as collateral. (Read 196 times)