In the legal dispute between Paymium and BitSpread, the commercial court in Nanterre has made a far-reaching decision on the legal status of Bitcoin. The ruling creates a legal framework for crypto loans and gradually translates digital currencies into applicable law.
A small step for the legal system, but a big leap for crypto adaptation. The commercial court in Nanterre, France, classified Bitcoin as money in a lawsuit between Paymium and BitSpread. What is a detail of the verdict could spur mass use of cryptocurrencies in France.A hard fork and its consequences
The French crypto exchange Paymium and the British investment company Bit
Spread are currently in a legal dispute. In 2014 Paymium lent BTC 1,000 to BitSpread in the form of a loan. When the Bitcoin network’s hard fork, in which Bitcoin Cash split off, finally occurred in 2017, BitSpread now also owned 1,000 Bitcoin Cash (BCH) in addition to the Bitcoin. The court was now concerned with BCH’s right to ownership, currently valued at $ 280,000.As the Swiss newspaper L’Agefi reports, the court dismissed Paymium’s lawsuit and ruled in favor of BitSpread. For the verdict, the competent commercial court in Nanterre had to first define the legal status of Bitcoin.
Bitcoin is money
The court therefore classifies Bitcoin as a fungible asset – or, to put it in a nutshell, as money. As a result, the court declared the Bitcoin loan as a consumer loan, in which ownership of assets is transferred to the borrower during the loan term. The BCH thus belongs to the borrower BitSpread, just as dividends are due to the shareholder, the court said.