Japan court rules against Bitcoin compensation plea

bbc.com / August 7, 2015

A Japanese court has ruled against a man hoping to claim compensation over lost bitcoins, saying the virtualCURRENCY cannot be owned.

The Kyoto man lost 458 bitcoins worth around 31 million yen (£160,000) following the collapse of the MtGox exchange last year.

But the Tokyo District Court said theCURRENCY was “not subject to ownership”.

As a result, the lawsuit seeking repayment was dismissed.

The judge in the case, Masumi Kurachi, ruled that the Japanese law only allowed for proprietorship of tangible entities that occupy space and which allow for exclusive control over them.

As a result, virtual currency could not be owned.

An example given by the judge was that transactions between users must involve a third party and therefore exclusive control over bitcoins was not possible.