Bitcoin has been recognized as a currency by a French commerce court during a recent trial. Les Echos, Local news outlet informed that recent announcement contradicts the decision of Commercial Court of Nanterre who deemed Bitcoin as a fungible interchangeable asset which cannot be individualised like fiat currency on Feb 26, 2020.
Paymium, French Cryptocurrency Exchange had a conflict with Bitspread, alternative Asset Investment Firm as Paymium loaned 1,000 BTC to BitSpread in 2014. The ruling of theFrench court is the part of the dispute between them.
While holding the leased 1,000 BTC, BitSpread also held 1,000 Bitcoin Cash (BCH) during the creation of hard fork in 2017. Both the firms are conflicting on the rights to the BCH which is worth around $350,000 now.
The French court came as a pacifier and addressed the French court. The Bitcoin was defined as the fungible asset and identified the lending of BTC as a consumer loan. This type of loan transfers ownership of the property to the borrower until the term ends for a loan.
The ruling may have an optimistic effect on the growing sector of crypto loans. The verdict led the French court to notice that Bitcoin Cash is owned by the borrower which is similar to dividends belonging to shareholders. Analysts acknowledge that the recent decision of the French court may compel the future loan contracts to include a clause related to return of additional assets which are made by a fork.
Hubert de Vauplane, a lawyer at Kramer and Levin firm, explains that the scope of the decision has many implications as it may allow Bitcoin to be treated as any other financial instrument. The decision may favour the liquidity in the crypto space.
The fact cannot be ignored that the legal definition of the Bitcoin is still not clear as some define it as money or commodities while other as securities or utility tokens.
Articles That Might Interest You.