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English Commercial Court Says Bitcoin Shall Be Considered As Asset Not A Service

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  • The English Commercial Court has recently ruled over the judgment that Bitcoin shall be considered as an asset, unlike a service. This verdict has come up with a new definition of digital assets.
  • According to the Court, the Cryptocurrencies should be seen as a crypto asset and this favored the UK Jurisdiction Taskforce (UKJT) Legal Statement over Crypto Currencies.
  • This small approach will somehow prove a premier step towards changing the definition of Cryptocurrencies in the EU.

The English Commercial Court has recently ruled over the judgment that Bitcoin shall be considered as an asset, unlike a service. This verdict has come up with a new definition of digital assets.

The cyberattack case

However, the case pertained to a Canada-based insurance company that was sentenced to ransomware through a cyberattack. The company was holding its self-insurance from a UK insurance company that paid the ransom fee in the prime cryptocurrency Bitcoin.

The UK insurer further traced the Bitcoins to the Bitfinex exchange that made the former to issue a ‘proprietary injunction’ for the ownership of the Bitcoins. This ban depicts that the respondent is unable to trade those assets that the claimant has claimed upon its ownership interest.

The judgment believed to be a global approach

According to the Court, the Cryptocurrencies should be seen as a crypto asset. This favored the UK Jurisdiction Taskforce (UKJT) Legal Statement over Cryptocurrencies. This statement has been viewed as a leading universal approach by changing the meaning of digital assets.

This may result in a significant link-up of Fintech and digital assets in the EU and will further describe the digital currencies as either an asset or as a service. As of now, there is no union in both the aforementioned fields.

This small approach will somehow prove a premier step towards changing the definition of Cryptocurrencies in the EU. The verdict must be seen as a great chance for the EU over cryptocurrency rather than an interruption.

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