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.

So you basically lined out 3 ideas on crypto currency on its main use or how it can be viewed by the mass. Let me give more detailed idea for you,

1. Crypto as money:
Yes it is! But crypto does not fit the conventional definition of money as it is not rolled out by a central authority. However, cryptos can be used to purchase goods and services around the world. Even though the numbers are less, but it is increasing day by day. We need to understand that cryptos have started getting the acknowledgement very recently. So we have a long way to go. But within the internet economy, crypto is indeed being used as a means of payment.

2. Crypto as an obligation:
I believe here the obligation means, the obligation to transfer the value. It doesn't apply for crypto for the same reason mentioned above. Any central bank issued currency is mainly the obligation/promise of that central bank to transfer the value of the currency to the holder. Since crypto is not issued by a central authority, there is no obligation or promise to pay the value. This particular parameter is not applicable for cryptos.

3. Crypto as a commodity:
For some cryptos it is true especially the asset backed stable coins like USDT, PXLT or Venezuela issued Petro. These cryptos are backed by real assets like US dollars or petroleum or bank deposits or even by a mix of assets. But doesn't stand true for the majority of other coins.

My idea about cryptos:
My idea of defining cryptos is very simple. Don't try to match crypto with any conventional asset to classify it. Crypto is absolutely a new kind of currency which is decentralized in nature. The more we try to compare it with the conventional system, the more confusing it becomes. I am not a law student or an economist. So try to write a new definition for cryptos which may not correlate with the standard system. The closest similarity you can find is with Gold. There are some characteristics of gold that goes well with cryptos.

 

Great study. Not many have delved into the topic of cryptocurrencies in the academe because it’s still hardly talked about. However, you may find it hard to find scholarly articles and sources to support your study. I siggest that you look into how different countries have various legal stands towards cryptocurrency. Some have created a ban, legalized it or is neutral towards it. Such as the Philippines where it’s neither legalized nor banned but has recognized crypto to have legal tender.

The easy approach like, peer to peer transaction, no third party is required, no need of walking to the bank spending time for transactions and being at ease of no hacking.  These have been and are best features to look at when we talk about crypto currencies. Blockchain secured system has been phenomenal and is one of the main pillars to be spoken at.

Hi dude, it's a currency which is seen as an asset. The main reason behind it is the price that bitcoin attains. Crypto currencies special is, it's unique from fiat's.  The fluctuations in price,  the transaction nature,  the secured protection system the Blockchain and no banking system. These are the things to look at when comparing with fiat's and speaking on crypto currencies.

I wouldn't subscribe to the idea that you are writing something new and so you should run away from it. Dissertation are meant to be researched upon and you come up with answers to questions asked by curios people on that subject matter. The answers will further help the society .

Therefore, I urge you to go ahead in your research, cryptocurrency to me is no longer a green horn. So you will find materials and editorials that will support your work. Use the web like google, this forum too will assist you when you raise question in appropriate section. Wish you the best of luck.

I think cryptocurrencies are an asset. They cannot be called a currency. Any currency has a Central Bank that regulates its turnover. He is also responsible for the process of inflation or deflation. All this crypto-currencies do not have. Perhaps in the future, cryptocurrencies and ICO can replace the stock market, but Fiat will always be.

This is very interesting question. There is need to mention openly about cryptocurrency as thesis. It is under analysis in most jurisdictions regularly. You can google it.

In the "2018 joint economy report", from the US, they dedicated a full chapter to speak about the cryptoworld, its implications and the legal point of view towards crypto and even exchangers. Also, they discuss if bitcoin should be considered as money or not. Chapter nine: https://www.congress.gov/115/crpt/hrpt596/CRPT-115hrpt596.pdf

This paper from the department of finance seems informative too: https://www.finance.gov.ie/wp-content/uploads/2018/03/Virtual-Currencies-and-Blockchain-Technology-March-2018.pdf

Another one you can find of interest from the IMF, this is complete: https://www.imf.org/external/pubs/ft/sdn/2016/sdn1603.pdf

Another paper from the South Africa reserve Bank and its position towards bitcoin (I haven't read it yet, so any comments will be appreciated): https://www.resbank.co.za/RegulationAndSupervision/NationalPaymentSystem(NPS)/Legal/Documents/Position%20Paper/Virtual%20Currencies%20Position%20Paper%20%20Final_02of2014.pdf

I hope it helps, as I said to you before, as well as I find something I will share.

To make the first research first is useful to read a lot about the topic, and, after that just choose a little problem to solve.
Just an advice from my PhD girlfriend jajaa.

it takes a very long time if you really want to learn this but you have to have a goal so what you learn about crypto is not widened and if you want to know what it is crypto according to experts is not many crypto experts who learn about this but economists are already trying to learn about this.

I'm not an expert but I want to tell you that  there are no common approaches and identical legal definitions for this word in the legal world or in digital realm.there are different legal and economical definitions from the court,therefore I advice you to read more about concrete country's court decisions about this relationships,because it will help you to understand exactly what it means for a concrete country.very often court precedents help us to precise something because of its practical nature,but at the same time its very important to read more books related to cryptocurrency(you will find literature easily,just Google it),without this I think you will never finish your dissertation.

Bitcoin is a universal tool. Everyone can treat bitcoin as he understands it and will be right. In the art gallery, too, everyone in the picture sees his own. For example Malevich's black square. Bitcoin can be compared to this picture. You will not be able to fully explain the bitcoin phenomenon. It's all at the same time nothing.

haven't we all been newbies in this field not so long ago
if he is willing to study the material and is smart
he will become an expert sooner than you think,cryptocurrencies is not something extra hard to grasp
but then there might be a thesis that sums up all the information about legal aspects of crypta in one place
win win in my books,so don't discourage the man or throw him your one line definitions

The crypto currency was found by someone who called Satoshi Nakamoto to be used as currency over internet,but most of the people using it as an asset over the currency but the real reason for the invention is currency so it need to be considered as legally even.

This will be a very interesting topic for the thesis. After all, the crypto currency has not been practically studied at the scientific level. Crypto currency can be regarded as a kind of money, because it has the function of a means of payment. To say that this is a commodity, it seems to me that it will be wrong. Each product must have a consumer value. What is the consumer value, for example, bitcoin? Yes, for theorists there is a large field for research.

I'll also recommend it but if he's on that topic finally there's no need to turn back.

I'm not an expert or what but I can give you some of my opinion but can you please state first what's the reason for these.

1. Why lawyers see it as money?
2. Why it is an obligation?

If you have zero knowledge about cryptocurrency you better start from different guides on the web, you can google them actually.

Honestly, I would pick a bit easier topic, moreover, if you are a newbie in this field.

Nature of cryptocurrency is to be used as an asset and currency.In many state bitcoin is used as an currency.In some countries,bitcoin is used as an trusted asset.If the bitcoin is accepted as legal one,people can use it as both currency and asset.If bitcoin and crypto accept as legal,people have to pay tax.

I think it is not very wise to write a dissertation on the subject you have a very vague idea about
you should start your research in (surprise,surprise) Google
I suggest you get a list of search queries, examples: cryptocurrencies+definition, what is cryptocurrency,legal aspects of cryptocurrency, cryptocurrency as a ..... (commodity,obligation,money etc.)
and so on and so forth
get first 100 results on each and skim through to pick ten most relevant,save them,read them,make notes
in the process you will be cross referenced to the sources,books and articles
it is a lot of work,but this way you can become an expert and your dissertation might become a success

Hey guys!

I am a 4th-year law student in the UK and want to write a dissertation on legal nature of cryptocurrency. There are 3 predominant ideas regarding the topic. Firstly, some lawyers see it as money. The second view is that it is an obligation. And the last one, and the position mainly taken in the US, is that it is a commodity (like diamonds or oil).

I don't know anything about cryptocurrencies, and maybe someone could help with starting the research or maybe with some expert opinion on the issue?

Thank u very much in advance for any help!