A Cryptocoins News article reported on a current legal battle being duked out in a California court illustrates just some of the many challenges involved in fully regulating Bitcoin and the entire cryptocurrency system. It sheds light on the number of legal concerns associated with this digital currency. This is along with the other main issue of no standardized set of regulations across countries even though the altcoins are being used across territories to pay for goods and services.
Disagreements About Bitcoin’s Role
Is it a commodity or a currency? Can it be both or change roles based on the type of transaction? It’s difficult to regulate something where there has yet to be agreement on exactly what role it plays.
For example, the California case involved HashFast Technologies, a company that paid for services using Bitcoin and was trying to sue to recover that currency after it had been paid to a physician. The ruling by the bankruptcy court judge concluded that cryptocurrency is not the same as U.S. currency but was actually considered to be “intangible personal property.”
This has proved to be a test on what have been termed “clawback” actions, which are intended to recover money that has