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From existence, cryptos have undergone massive changes. Created over a decade ago, they have been gaining market traction. Bitcoin came to existence in 2008 to mitigate the effects of the economic crash. It has, through the years, undergone various developments.

It started as a coin for the few elites and the tech-savvy. Most people had not thought of the possibility of it replacing the fiat currency. It soon gained users with the value hitting $100 within the first few months. After a while, it was into the thousands. It even hit $20k as the all-time high. 

It soon drew the attention of the governments and the traditional financial institutions. Both entities rejected it. The government wanted to keep control of the economy. Bitcoin would make it lose out on the taxes and the authority. The banking system failed to recognize it as an asset or an alternative currency. 

That is different from now when cryptocurrency is becoming mainstream. The governments have embraced cryptos. Most countries are in the process of launching central bank-backed cryptocurrencies. 

Businesses use cryptos as a payment method. The traditional banking system has also accepted it as a tradable asset. 

Is that all the crypto can be? Follow this article to understand the next growth pattern. 

Crypto as a property

The question of whether cryptocurrencies are property has been on for some time. It is an ongoing conversation in various jurisdictions. And like any other contagious issue, the legal world is in the lead in defining the coins. 

The first of its kind was the ruling by the Singapore International Criminal court. In the case of B2C2 Ltd vs Quoine Pte Ltd, the court ruled that cryptocurrencies can be considered as property and can be in trusts.  

The England Courts have also had some run-ins with the analysis of cryptos as a property. One such high-profile case is the AA v. Person Unknown (2019) EWHC 2556 (Comm). The courts concluded that cryptocurrencies are a form of property. 

The court based its finding on the reports of a UK Jurisdictional Taskforce (UKJT) on the state of the cryptocurrencies. The report acknowledged that cryptos are not classifiable as things in action or things in possession. However, they are another kind of property. 

The courts found the UKJT analysis compelling. It could allow for an injunction order on a bitcoin ransom payment. The case involved a Canadian company insured by an English company. 

The court order allowed it to follow through ransoms it had paid using Bitcoin. It had paid the ransom following a malware encryption attack. It was in exchange for the customer details. 

Any property comes with these features, which the cryptos have; 

1. Definable 

2. Identifiable by third parties

3. Capable by its nature of assumption by third parties 

4. Capable of some degree of stability or permanence 

Challenges in Using crypto as a Property in the global context 

Declaring crypto as a property is not all. There is still more to look into when it comes to the global application of such recognition. Crypto is a decentralized coin that allows for cross-border transactions. While it comes with the ease of transactions, it a significant hindrance to the crypto operations as a property.  

Even though the governments don't control crypto, they provide for regulations within a jurisdiction. While some governments value cryptos, others are a sceptic. It makes it hard to create a single international law regarding the cryptos. Following up on a crypto crime case in different jurisdictions is not one of the easiest. 

Most of the countries would not comply with any ruling from another country unless it complies with the relevant local jurisdiction. 

Following up on the matter internationally also requires additional resources. You have to include all the necessary parties to the claim. These parties must also operate within the jurisdictions. For example, you can only involve an exchange as a party when it offers the services in the given jurisdiction. 

What is the future of crypto as a property?

The debate on whether crypto is property is just picking up. The more the currency becomes popular, the much interest it will draw. People 

Treating crypto as a property is excellent for the traders. There is a peace of mind that comes with knowing the law protects you. You can easily transact and not worry about the criminals. 

Regulation is another concern that comes with crypto being a property. Most traders prefer cryptocurrencies due to anonymity. They can transact without the possibility of establishing details. This is different when the currency becomes like any other asset. 

Any case involving crypto will be admissible in a court of law. Courts rely on evidence more than any other thing. To prove any misconduct, you have to provide transaction records. You also have to show proof of the involvement of all parties.  

It means, while cryptos become accepted as property, not all coins will qualify. Several coins have been working to improve their security standards. Most altcoins value privacy. They allow transactions without revealing any details, unlike in Bitcoin, where all details are available in the blockchain. 

Bottom Line 

Defining crypto as the property has a massive impact on how users handle the coin. The recognition comes with security. It determines if the cases involving crypto are permissible in courts. It also determines whether the currency can be seized or frozen for enforcement. 

Crypto is still on the infancy stages with regulations. Several other countries face the legal hurdles involving the coins. The past rulings from other jurisdictions form precedence. They will all merge to create a global consensus on cryptocurrencies. 

Recognition as property forms the basis for other frontiers in the crypto. Once declared a property, the coin will operate like the fiat currency. It will become more mainstream. With time, it might be the prospects of the crypto replacing the fiat. Only time will tell. 

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