RE: French Commerce Court Likens Bitcoin To Currency In Recent Ruling
A French commerce court classified Bitcoin as a currency on February 26th
French Commerce Court Likens Bitcoin to Currency in Recent Ruling
“Local news outlet Les Echos reported on March 5 that the Commercial Court of Nanterre decided on Feb. 26 to qualify Bitcoin as a fungible interchangeable asset that is not individualizable, just like fiat money.
The ruling was part of a dispute between French cryptocurrency exchange Paymium and alternative asset investment firm BitSpread. Per the report, Paymium loaned 1,000 BTC (over $9.1 million as of press time) to BitSpread in 2014.
When holding the leased 1,000 BTC, BitSpread also got hold of 1,000 Bitcoin Cash (BCH) when the hard fork creating the altcoin was carried out in 2017. Now the two parties are disputing the rights to the BCH worth over $350,000 as of press time.
To resolve the dispute, the court had to address the legal nature of Bitcoin and, after defining it as a fungible asset, identified Bitcoin lending as a consumer loan. This kind of loan transfers ownership of the property to the borrower during the term of the loan.”