Why a Groundbreaking But Little-Known Injunction Confirms BTC as an Asset
- The English commercial Court has ruled on whether Bitcoin could be considered as property
Recently the English Commercial Court has established in AA v Persons Unknown and Others, re Bitcoin, that Bitcoin shall be deemed an asset and not a service, breaking from the ambiguity that has surrounded regarding the definition of digital assets.
The case involved an insurance company based in Canada that was subject to ransomware via a cyberattack. The company itself held its own insurance from a UK insurance company, which paid the ransom fee in Bitcoins. The UK insurer then traced the Bitcoins to Bitfinex exchange, which led the UK insurer to issue a proprietary injunction for the possession of the Bitcoins.
A proprietary injunction entails that the respondent is not able to deal or trade with the assets that the claimant has claimed proprietary interest upon.
The English Commercial Court has held that Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term should be viewed as a crypto asset, and by that, it sides with the UK Jurisdiction Taskforce (UKJT) Legal Statement on Crypto Currencies.
The approach taken by the Commercial Court can be seen as a spearheading the global approach when it comes to the definition of digital assets, which might lead to harmonization in the field of Fintech and digital assets in the EU and will define cryptocurrencies either as an asset or as a service.
As currently there is no unification or harmonization in the field of cryptocurrencies in the EU, this step, as minor of an injunction as it seems, is paving the first steps for the harmonization of the definition of cryptocurrencies in the EU.
The EU should see this injunction as an opportunity, rather than a hindrance, especially in light of Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term, whilst enabling the EU Commission to tackle the area of cryptocurrencies in legislative form rather than action plans.
Recently the English Commercial Court has established in AA v Persons Unknown and Others, re Bitcoin, that Bitcoin shall be deemed an asset and not a service, breaking from the ambiguity that has surrounded regarding the definition of digital assets.
The case involved an insurance company based in Canada that was subject to ransomware via a cyberattack. The company itself held its own insurance from a UK insurance company, which paid the ransom fee in Bitcoins. The UK insurer then traced the Bitcoins to Bitfinex exchange, which led the UK insurer to issue a proprietary injunction for the possession of the Bitcoins.
A proprietary injunction entails that the respondent is not able to deal or trade with the assets that the claimant has claimed proprietary interest upon.
The English Commercial Court has held that Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term should be viewed as a crypto asset, and by that, it sides with the UK Jurisdiction Taskforce (UKJT) Legal Statement on Crypto Currencies.
The approach taken by the Commercial Court can be seen as a spearheading the global approach when it comes to the definition of digital assets, which might lead to harmonization in the field of Fintech and digital assets in the EU and will define cryptocurrencies either as an asset or as a service.
As currently there is no unification or harmonization in the field of cryptocurrencies in the EU, this step, as minor of an injunction as it seems, is paving the first steps for the harmonization of the definition of cryptocurrencies in the EU.
The EU should see this injunction as an opportunity, rather than a hindrance, especially in light of Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term, whilst enabling the EU Commission to tackle the area of cryptocurrencies in legislative form rather than action plans.