In the past some years, the use of virtual currency has been increased, but yet people do not take it as money. However, a decision provided by the court of law in the USA, there is no doubt that money is not different than the bitcoin. In a surprising outcome, the D.C Federal court has said that Bitcoin is a form of money. Hearing the case of United States v Harmon, Howell, the Chief Judge mentioned that Bitcoin is a form of money as generally money is a medium of payment and exchange and anything that can store value. Bitcoin meets all these requirements, and hence it can be considered as money. This verdict has created sensation in finance world and also opened the new directions for the virtual currency.
Bitcoin covered under Money Transmitters Act
As per the new ruling, Bitcoin is now considered a form of money, according to the Washington D.C Money Transmitters Act. The money laundering case against Larry Harmon, who operated an unlicensed bitcoin trading platform, was heard by the court, and it declared bitcoin as money so that criminal charges against the accused could not be dismissed.
What experts say in this matter?
While the court’s decision has cheered many market participants in the cryptocurrency market, things still remain the same as per market experts. The decision of the court, which agreed that bitcoin is a form of money, is meant in that particular context of money transmission licensing in D.C. Apart from that, it does not provide any validity for the cryptocurrency in other forms of the financial markets.
Investors should not get too excited about this decision, and it should be taken with a pinch of salt as it does not provide legal sanctity to cryptocurrencies. Many investors are shying away from such investments as they are afraid of regulatory sanctions against cryptocurrencies. In some countries, such cryptocurrency exchanges have been banned without considering the fate of investors. In this situation, investors should always exercise caution while dealing with cryptocurrencies.
In most cases, even though you might be dealing with a stable cryptocurrency like Bitcoin, you should also be careful about the exchange offered by the trading services in this virtual currencies. If the exchange is not having regulatory permissions from the local government, it may get into trouble at a later stage, and you will face problems with your investment. Investors should consider all these factors while investing in cryptocurrencies.