To round off a week of positive developments for the cryptocurrency industry, France has officially recognized Bitcoin as a legal financial instrument. Elsewhere, India, South Korea, and Germany have seen similar legal developments in recent days.
Many industry observers are rejoicing today, as a court case in France has determined that Bitcoin is a legal form of money. The development will provide greater clarity for those doing business in an industry in which uncertainty is frequently the norm.
Bitcoin to Be Treated Like Any Other Form of Money in France
According to a report in a local news publication, the Commercial Court of Nanterre made the landmark decision at the end of last month. [Les Echos] The ruling relates to a case between French cryptocurrency exchange Paymium and UK-based alternative investments firm BitSpread.
The former company loaned 1,000 BTC to BitSpread prior to the Bitcoin Cash hard fork in 2017. Following the chain split, the two parties both claimed the Bitcoin Cash created belonged to them.
The issue forced the court to consider the legal nature of Bitcoin. After establishing that Bitcoin was a legitimate form of money, it ruled in favor of the borrower.
The court reasoned that Bitcoin lending is the same as any other “consumer loan.” Therefore, ownership of the property borrowed during the loan contract transfers to the borrower.
Another Bullish Development at the Nation State Level
Cryptocurrency enthusiasts rejoiced at today’s news out of France. Twitter user Bloqport (@Bloqport) called it a “historic day for the crypto industry.”
It’s not just France that has seen bullish developments occur in the last week though. There has been a slew of developments at the nation state level of late.
As highlighted above, and reported recently by BeInCrypto, lawmakers in South Korea, India, and Germany have also enacted positive legislation for the industry.
At the beginning of this week, the Federal Financial Supervisory Authority (BaFin) of Germany issued guidance that classified Bitcoin and other cryptocurrencies as legal financial instruments. The decision is part of a wider update of the nation’s money laundering laws.
South Korea passed new legislation yesterday too. In an effort to curb money laundering, the nation’s National Assembly determined that exchange platforms should be subject to the same reporting standards as other money service providers.
Finally, the Indian Supreme Court also delighted cryptocurrency observers this week. It overturned a controversial ban the nation’s central bank had previously placed on financial institutions transacting with cryptocurrency companies.
Given the spate of bullish developments for the industry this week, it might seem as if “2021” in the above tweet is a typo. However, it’s more likely an allusion to historical Bitcoin price performance.
As BeInCrypto has previously reported, the leading crypto asset has rallied hard in the year after each of its two halvings. If history repeats, 2021 would be the one to watch for any real BTC price fireworks.