Topic: Legal nature of cryptocurrency (Read 451 times)

Thinking about the legal nature of cryptocurrency, then it can be termed under financial service section as it is used to send and receive money across different places but due to its rising demand its price is skyrocketing every another day due to which people are accruing it as an asset. Cryptocurrency is still not widely appreciated due to which its legal nature is still under various questions.

General feedback on the research.

From what I have read over the last month, I lean towards the view that in legal terms bitcoin has to be considered as money. The logic is as follows.

If bitcoin is a commodity, then any contract on the exchange of bitcoin for a good would be considered as barter. Barter in the UK is not regulated under statute law, so on the commercial level, this creates a risk that such contract would have to be decided by old precedents which may not be fully accurate at present day. Meanwhile, if bitcoin is money, then it is just a normal sales contract, which is covered under the normal rules of Sale of Goods Act 1979 and Consumer Rights Act 2015. This would create a much more stable precedent system than if bitcoin is considered as a commodity.

On the same level, I fully understand the government's position on why not allow bitcoin to become a currency as this may infringe the security of the domestic currency. However, what if limit bitcoin to a certain level of its usage? In other words, parties have agreed, for their commercial transaction, to use bitcoins instead of the domestic currency. The court in any commercial dispute (for example claim in damages) would then just use bitcoin sum but the damages would be paid out in the domestic currency equivalent.

Hey everyone!

In my studies, I have come across a case involving Mt Gox. I know that some of the parties which suffered damage due to Mt Gox bankruptcy raised their case in the US. Specifically, I am looking for the case material involving Gregory Greene, who raised the action in the US District Court in Northern District Illinois around end of January 2014. I don't have anything on our UK system, may be someone has an access to the court materials in the US?

crypto in the bitcoin era is a great breakthrough thing. Especially how an electronic payment system can run without having to rely on any party and authorit

Interested in reviewing your dissertation closer to the time.  Best of luck.

Bitcoin can not be called money. It may not have the definition of digital money. It is very difficult to buy goods for bitcoins. Everything that can be bought for bitcoins belongs to IT. The bulk of people who spend cryptocurrencies pre-exchange them for Fiat on the exchange. It seems to me that cryptocurrencies are more similar to the General shares of the IT industry and equipment manufacturers.

I think that the second view which is cryptocurrency as a obligation is a conditional view as cryptocurrency in itself cannot be a obligation for one it is a cryptocurrency only humans can have a obligation the only way I am seeing cryptocurrency as a obligation is when someone owes cryptocurrencies to them. And the other two is a hard one as classifying what kind of assets are cryptocurrencies could mean that they will have different kinds of taxes in return, also the law will set it as bases on future cases. 

For crypto currency, there should be a separate term - digital money.  You can not touch the crypt, touch it, you can not call it money.

Cryptocurrencies legal nature is nothing but it is digital currency. Now people are using this currency as a big assest. Investment is low but profit is more. We dont need banking system for this cryptocurrency. Due to its blockchain technology it is very secured in nature. People now invest in cryptocurrency rather than anyother investment. Because cryptocurrency investment is more profitable than anyother investment.

The nature of bitcoin is nothing but it is an assest. We can earn more money while investing in bitcoin. It is not like a bank, we have yo walk and wait for long time. Its a secured blockchain technology we can chane bitcoin to local fiat at any time. The investment is small but profit is more in cryptocurrency. So nowadays people are using bitcoin as their assests rather than any other assets.

If you really don't have any much knowledge about it, I think it wouldn't be a good idea to publish on it. Anyway it's good you are ready to learn about it. Also I can contribute to your research by saying that i see cryptocurrencies as currencies that can be used to perform transactions. You should read out more from large crypto media outlets such as cointelegraph and the others. You'll find nice crypto reviews and matters related to crypto over there

If you are planning to do a dissertation about the legal nature of cryptocurrency and you do not have a nick of idea about it then go find another topic. Doing a dissertation is not an easy task, especially for law students. If your really insist on doing so, do not search for answers on this forum, and do your own research. Surely there are many articles about cryptocurrency, you just have to pinpoint on the valuable one's.

you need to know after the confirmation process, a transaction can not be canceled by anyone, either by bank, you, even by Bitcoin inventor himself. After you send money, the money is sent to the end of the process. It can not be undone even if you are deceived, no word backwards.

Cryptocurrency can called money because anything serve as a medium of exchange or mean is money and the reason behind cryptocurrency creation to is save the world from inflation cause by the government, make people financial freedom and make every man equal which the reason why most crypto currency are decentralists. Read this Reddit post so you can understand crypto currency better.

I will impart to you what I knew about cryptocurrency.  First,  is that cryptocurrency is the money of the internet,  therefore it exist only in the internet unless  you convert it thru the process of conversion until it reaches  Bitcoin and then to US dollar and finally to your local currency.  There are so may coins but the most popular is  Bitcoin.  In legalities,  Bitcoin is not legal but it is not banned.  From here and  to add more on your knowledge of cryptocurrency, please research thru Google, Medium, You tube and read topics here in Bitcointalk Forum.  Many information you can gather here.  Good luck in your studies.

I agree on the comment that it might be difficult to use this as your topic in your thesis, even if it's related to law, especially if you have no background in finance. You can google most of the information you will need since that's where most of the articles exist. In legality, it depends on your country but I agree with the quote "not legal, but not illegal" above.

It's something different but familiar. I don't get the "views" that you stated since it they look vague for me. In simpler terms, you should understand first the nature of "currency/money/legal tender". If you've studied about that(I think that was way back macroeconomics?) then just add "crypto" and the rest will fall in place. PS. Money can be used to invest in commodities i.e. basic goods, also including stocks, real estate, and mutual funds, money can buy money i.e. Forex, and then, money can buy crypto. Some say it's like stocks because you can trade it but it's more like Forex, this time it's crypto exchange.

There is no "Legal nature" of cryptos... there is however, third party nefarious entities such as the Law society/Legal profession, that will attempt to co-opt the crypto movement via their REGISTERED corporations... and re-inserting third parties... the very intermediaries we should be getting rid of. Can't control the cryptos, but they know the public are ignorant of jurasdiction/legalese... exchanging from crypto to fiat with a fraudulant Legal Name (free beings did not author this, it was a Legal transaction, Personage/Fraud and Contracting with a minor). Fiat is TENDER FOR LAW / LEGAL TENDER, and has jurasdiction attached for those committing fraud using this fraudulant/incorrect name+status.


Money, “Law”/Legal, Satoshi Nakamoto, and the Bitcoin “not legal, but not illegal” money revolution - Part 1 - by Maximus.
Highly Recommended Note: https://www.facebook.com/notes/anibal-jose-baez/money-lawlegal-satoshi-nakamoto-and-the-bitcoin-not-legal-but-not-illegal-money-/10154358869064169

Perhaps you should pay attention to what different countries are doing to regulate this issue. For example, Russia is considering a bill that will introduce such a term as a digital asset into the legal field. I can't say for sure about, for example, bitcoin, however, I assume that this can serve as a further promotion of the crypto-currency into regulated activities. Sorry for English. I use Yandex translator.

Money and commodity then it would really be understandable or even just on common sense you can able to figure it out and if you do know crypto. Same on your views i dont even see why some people do see this as an obligation.
When it comes to research all necessary informations are already on this forum having a read up would definitely give out a wide range ideas which you can realize and can really be helpful on OP's studies or research.

Money? Yes, I think most of us here will agree that it can be considered money. I'm not totally sold on the idea that its a obligation though, or maybe you guys have some sort of legal meaning as to what obligation is, but for casual folks I don't think that it can be considered as it is. Commodity, partly yes, I would agree with that. As other's have suggested, Google is your friend and others posted links that you can read and dissect and see how it fit the idea on crypto is. This market is still on its infancy so that's the prime reason that the law has not been laid down. Good luck though and I hope that at least this forum has help you in any way.