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Dutch Court Rules Bitcoin is Transferable Value

Dutch Court Rules Bitcoin is Transferable Value

Dutch Court rules Bitcoin is transferable value, as the decision of the court has stated that Bitcoin demonstrates all the features of a “property right”. Therefore, a claim to transfer Bitcoins under property rights is legal.

23 March, AtoZForex According to the court document published earlier this week, a Dutch court has classified Bitcoin as a “transferable value” after it ruled in favour of a plaintiff who was owed -0.591 Bitcoins.

Dutch Court Rules Bitcoin is Transferable Value

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Mr. J. W. de Vries has filed the claim in a Dutch court at the beginning of February 2018. The claim was filed against Koinz Trading BV, which is a non-public company. The company has previously ordered by a lower court to pay mining proceeds in the amount of 0.591 BTC owed to a petitioner. Alternatively, the penalty payment constituted a €10,000 maximum.

As a result of the company’s failure to follow its obligations to pay the required volume in BTC, the court has offered the company two options. These included paying the sum or declaring insolvent. The ruling of the court has stated that Bitcoin demonstrates all the features of a “property right”. Therefore, a claim to transfer Bitcoins under property rights is legal:

 “Bitcoin exists, according to the court, from a unique, digitally encrypted series of numbers and letters stored on the hard drive of the right-holder’s computer. Bitcoin is ‘delivered’ by sending bitcoins from one wallet to another wallet. Bitcoins are stand-alone value files, which are delivered directly to the payee by the payer in the event of a payment. It follows that a Bitcoin represents a value and is transferable. In the court’s view, it thus shows characteristics of a property right. A claim for payment in Bitcoin is, therefore, to be regarded as a claim that qualifies for verification.”

Is Bitcoin getting wider adoption in the Netherlands?

The Dutch court found out that there was an undisputed contract between Koinz Trading BV and Mr. Vries. Now, since the obligations were taken in Bitcoins, the amount should also be repaid in the same currency. The court has regarded the legal relationship as a civil obligation to pay.

As a matter of fact, the Dutch court might be steadily moving toward cryptocurrency being seen a currency. However, other organizations do not recognize it in this role. The G20 Financial Stability Board (FSB) has released a document earlier this week, where it has stated that it considers cryptocurrencies to be assets. The document claims that cryptocurrencies “lack the traits of sovereign currencies.”

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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