The High Court of England has ruled that the stablecoin USDT di Tether can be considered property, subject to the legal rights of traceability and fiduciary ownership, marking an important step for cryptocurrency regulation in the United Kingdom (UK).
Let’s see all the details in this article.
Historic ruling in UK: the stablecoin Tether as property in England
In a ruling that could represent a significant turning point in the legal landscape of cryptocurrencies, the High Court of Justice for England and Wales has determined that the stablecoin USDT, issued by Tether, can be considered as property.
This development comes at a time of increasing regulatory attention on criptovalute in the United Kingdom, with the government having started to discuss legislative proposals to regulate their status.
The ruling of the High Court marks an important step towards the legal definition of digital resources, granting them protection similar to that of traditional properties.
The judge Richard Farnhill, vice judge of the High Court, clarified that USDT, according to English law, can attract property rights.
Farnhill emphasized that stablecoins like USDT can not only be tracked, but can also constitute fiduciary property, on par with other forms of traditional assets like money or stocks.
This decision is based on the nature of the stablecoin itself, designed to maintain a stable value pegged to the US dollar, which makes it a virtual asset with unique characteristics compared to other more volatile cryptocurrencies.
This legal recognition represents an important step forward for the adoption of cryptocurrencies as legitimate financial instruments. Furthermore, it could pave the way for greater legal protection for those who own stablecoin or other cryptocurrencies.
The case of d’Aloia and the crypto scam
The context of the ruling concerns a legal case brought forward by Fabrizio D’Aloia, an investor who reported being a victim of a cryptocurrency scam.
D’Aloia accused an unidentified defendant of deceiving him into transferring cryptocurrencies, including Tether’s USDT and Circle’s USDC, for a total value of about 2.5 million pounds (3.3 million dollars).
According to the accusation, the funds were then moved through different wallet blockchain before being converted into fiat currency via exchanges like Gate and Bitkub.
The case also involved the cryptocurrency exchange Bitkub and six other defendants, including Binance, the largest exchange in the world by trading volume.
However, Judge Farnhill ruled that D’Aloia had no rights against Bitkub, as the exchange had not received any payment directly from him. In addition, the case against the trading platform Aux Cayes Fintech was dismissed.
Despite the negative verdict for D’Aloia regarding the specific defendants, the case has helped to highlight the vulnerability of investors in the world of cryptocurrencies and the need for greater regulation and legal protection.
The legal recognition of cryptocurrencies
In any case, the recognition of the stablecoin USDT as property by the High Court comes at a crucial moment, given that the UK government has just begun to examine the regulation of cryptocurrencies.
Last Wednesday, the British Parliament presented a bill drafted by the Law Commission, the independent statutory body responsible for examining legal issues.
This bill aims to treat cryptocurrencies as property, offering them greater legal protection.
According to the bill, cryptocurrencies do not fall into the traditional categories of “in possession” assets, which include tangible items such as money or cars, nor into those of “in action” assets, which cover intangible elements such as credit rights.
However, as highlighted by Judge Farnhill’s ruling, cryptocurrencies, including USDT, are still considered property in every respect.
This represents an important progress for the regolamentazione of cryptocurrencies and offers a greater clarity on how these assets should be treated in the legal field.
The potential influence of the United Kingdom (UK) decision towards Tether
The decision of the High Court could have significant repercussions for the future of cryptocurrencies in the United Kingdom and beyond.
With the growing adoption of stablecoins like USDT and USDC, which are designed to be less volatile compared to traditional cryptocurrencies, the legal recognition of these assets as property opens new perspectives for their regulation and protection.
This ruling could also push other jurisdictions to follow the example of the United Kingdom and consider cryptocurrencies as property, providing investors with greater legal security.
Furthermore, the recognition of property rights on stablecoin could encourage the use of these digital resources in broader contexts, such as in international trade and daily financial transactions.
However, it is important to emphasize that, although this ruling represents a step forward, many unresolved issues remain in terms of regulation and supervision of cryptocurrencies.
The scams, like the one suffered by D’Aloia, demonstrate that there is still a wide margin of risk for investors.
Therefore, in addition to the legal recognition of cryptocurrencies, further efforts will be needed to improve transparency and security in the cryptocurrency market.