Cryptocurrency Is A Legitimate Investment Tool, Says An Australian Judge

News / 29.02.2020

Recently, there is a defamation case in the New South Wales District Court, and Judge Judith Gibson approved the use of cryptocurrency as collateral. The judge said that cryptocurrency is a form of investment with recognition and acknowledged its volatility, as per a brief from the Australian Associated Press.

The New South Wales court directed that the plaintiff must deposit 20000 AUD (about $13,000) in a bank account guarded by the courts. In this case, the plaintiff’s loss or success would result in using funds to settle a part of the defendant’s legal fees.

The Court Rules in Favour of Cryptocurrency

The court allowed the plaintiff to use their cryptocurrency exchange account instead of a bank account. However, the defendant’s team raised instability concerns, making the plaintiff decide to report every month regarding the account’s cryptocurrency value.

Furthermore, when the cryptocurrency account’s value falls below 20000 AUD, the plaintiff must notify the defendant’s solicitor. In this case, the use of cryptocurrency as collateral signifies that the digital currency’s industry is valid to governments globally.

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Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.