An Australian Judge Comments on Cryptocurrency as a Legitimate Investment Tool
A defamation case brought before the New South Wales District Court is in the news as Judge Judith Gibson okayed the use of cryptocurrency as collateral.
The NSW court said the plaintiff must deposit $20,000 AUD (about $13,000) in a bank account guarded by the courts. Hence, the plaintiff’s loss or secession would lead to the use of the funds to pay for a part of the defendant’s legal fees.
However, the court permitted the plaintiff to utilize their cryptocurrency exchange account in place of a bank account.
The defendant’s legal team raised instability concerns, thereby making the plaintiff agree to report every month regarding the status of the cryptocurrency account’s value.
Besides, in a situation whereby the cryptocurrency account’s value reduces below 20,000 AUD, the plaintiff must notify the defendant’s solicitor.
Although the use of crypto as collateral is not the most attractive use case it is a sign that the developing industry is valid to governments globally.
Featured image courtesy of Shutterstock. Source: Cryptopress.