February 4, 2019 / Law

American Federal Dictrict Сourt Found Bitcoin Cryptocurrency To Be Money

law bitcoin

The Michigan District Court (USA) declared Bitcoin (BTC) cryptocurrency as a legal money. This verdict was rendered during the consideration of a criminal case on the fact of money laundering using digital assets on the LocalBitcoin cryptocurrency trading platform.

At hearing, the defense stated that Bitcoin is not to be adle to consider a monetary asset, therefore, the cryptocurrency isn’t a subject to money laundering. However, the court decided to recognize BTC as a money, since the cryptocurrency is used as a medium of exchange, has a certain value and serves as a means of payment.

The court decided to recognize the laundering of money using Bitcoin as a law violation, since the cryptocurrency complies with the definition of cash. According to the Michigan court, the law on combating money laundering applies the BTC in full.

The decision of the judge based on the definition of digital assets developed by the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Asset Control (OFAC). Lawyer Stephen Palley believes that in 2019, OFAC will begin to participate in the regulation of the cryptocurrency industry actively. Foreign Assets Control is one of the most influential US agencies. OFAC has the right to impose fines, change tariffs and even impose sanctions on local and foreign commercial enterprises.



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