The legal nature of bitcoins –

The legal nature of bitcoins -

In an episode of the popular TV series The Good Wife, called “Bitcoin for Mim Bitcoin”, the person acting on behalf of “Mr. Bitcoin”, the anonymous and mysterious inventor of the cryptocurrency, to protect the government from the protagonist’s legal Hires the firm. Action.

The premise of the episode is that the US Treasury Department wants to find the creator of bitcoin because the digital currency is illegal in the US. While it is a gross representation of the legitimacy of the currency and commodities around bitcoin, the episode identifies some of the most pressing legal issues surrounding their use.

What is their legal status? Am i a currency? Are they a commodity? Am i a security In short, is bitcoin legal? To get this article, we also relied on this information. Bitcoin and cryptomone.

Types of currency from legal perspective

There are usually two types of currency from a legal point of view, legal tender and legal tender. Legal tender is only a currency that cannot be rejected in fulfillment of the loan. Legal currency is recognized by the government as a legitimate method of payment for goods and services.

Legal tender and legal tender are the same in most countries, but there are some exceptions. For example, there is something called a local currency, which is a currency that is generally accepted for payment in the local area, within a small number of participating shops. Similarly, most UK Bank of England notes are legal tender, but there are notes issued by various banks in Scotland and Northern Ireland which act as legal tender. It is common for economies with weak local currency to view international reserve currencies (such as the US dollar or euro) as legal tender.

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Since some of the legalities surrounding bitcoin are still not fully understood, there is still enough room for lawmakers and regulators to try to overcome the problems that can arise with the use of virtual currencies. Bitcoin users are learning the hard way because financial markets and currencies are highly regulated sectors. Depositing, keeping accounts, managing payment transactions, keeping balances are all functions of financial institutions which are of utmost importance for businesses and consumers.

The economy relies on financial intermediaries to operate and regulation is designed to prevent harm to consumers. An interesting app called Bitcoin Era was recently launched to try to better understand all aspects of bitcoin. Click who To find out what bitcoin was.

Regulators have been alerted to address some of the legal issues highlighted by the emergence of cryptocurrency. Part of the appeal of the payment system is that it is fully decentralized. Like with P2P file sharing, tomorrow you can close all bitcoin intermediaries and the network will continue to function as it does not depend on a central system. Bitcoin may very well be illegal, but it is almost impossible to shut down efficiently as a distributed network.

In the United States, only US dollars are legal tender. Similarly, only the Mint and Federal Reserve can produce coins and currencies, which are the only means of legal tender. Title 31 of the United States Code does not appear to distinguish between legal tender and legal tender, so they appear to behave equally. This has been confirmed by several official documents which clearly indicate that only the US dollar is allowed as the official US currency. While all of the above does not mean that bitcoin is illegal in the US, due to many of the problems described above, BTC is not currently used as a currency, with the exception of websites, perhaps illegal goods on the ‘Dark Web’ to tackle. .

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Bitcoin should be treated more like a speculative vehicle than a stock or commodity, in which case its possible definition as a currency would not be necessary. Yang argues very strongly that bitcoin can be considered a security under US law, especially because the Securities Act 1933 Securities Act and the Securities Exchange Act of 1934 include definitions of all types of bonds, bonds and certificates Are sufficient for Interest and Investment Contracts.

Only the future will be able to tell us what will happen between bitcoin and cryptocurrency in general.


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