The Commercial Court of Nanterre has officially recognized Bitcoin status in France. The court approved the official status of Bitcoin (BTC) in a decision made in late February this year. But, this decision was yet to be made public till now.
This good news is made public by Les Echos-a popular newspaper in France. According to it, BTC has qualified for seeking fungible intangible assets, similar to a fiat currency in France which proves its legal status in France.
The aforementioned decision was made by the Commercial Court of Nanterre while deciding on a dispute between French crypto exchange Paymium and English investment firm, BitSpread.
A Warm Welcome by Bitcoin Community
Earlier, Bitcoin made its first lead in Europe when Germany had become the first country in Europe to give Bitcoin legal status as ‘private money’ and a financial tool.
This recent news from France brought a fresh wave of joy on the face of the Bitcoin community. A lawyer Hubert de Vauplane from Kramer & Levin expressed his views that the Court’s decision would empower the Bitcoin community in France and boost cryptocurrency transactions there. Resultantly, liquidity of cryptocurrency would go high as there is a high probability of increase in cryptocurrency transactions – lending, trading, repo, etc
Les Echos has also shown a positive hope that Bitcoin business would spur after getting its official status in France. The analysis has expected a rise in Bitcoin transactions and BTC liquidity.
How BTC got official Approval in France?
This cherished decision was announced by the court while deciding on a dispute between two crypto entities. The dispute emerged between French crypto exchange Paymium and English investment firm, BitSpread when the latter asked the former to return received BCH with the loan.
Back in 2014, Paymium lent BitSpread a certain amount of BTC. Later on in 2017, Bitcoin Cash was created as an altcoin version of the popular Bitcoin cryptocurrency. Resultantly, all BTC holders received BCH on a 1:1 ratio. Here the dispute emerged between the two parties over returning the received BCH to Paymium.
Verdict on this dispute proved to be a blessing in disguise for Bitcoin (BTC) to win legal status in France.