Dutch Court Declare Bitcoin To Be Authentic Transfer Of Value

Recently, a Dutch Court has ruled in favor of the plaintiff, JW de Vries who was suing Koinz Trading BV for 0.591 BTC of Bitcoin mining proceeds which he owned. Why is this important? Well, it shows that the Dutch government recognizes digital currency as an authentic store and transfer of value.

According to the court, “Bitcoin represents a value and is transferable, […]  it thus shows characteristics of a property right. A claim for payment in Bitcoin is therefore to be regarded as a claim that qualifies for verification.”

The court further added, “from the documents submitted by the applicant; it appears that several persons have claims on the vested party that see the payment of Bitcoin or on claims for non-fulfillment of obligations under an agreement, with penalties attached in some cases. […] At the hearing, therefore, it appeared briefly that the applicant had a right of action, as well as facts and circumstances, which show that the applicant is in the position of having ceased to pay.”

Initially, after Koinz Trading BV lost the case and was ordered to pay the amount was also warned that failure to comply would invite a potential penalty of ten thousand euros. However, even after the discussed amount was still not paid to the plaintiff, the court cited the Dutch Bankruptcy Act, with explicit mention of articles 1, 2, 4, 6 and 14, and proceeded with the verdict: If the 0.591 BTC is not settled, Koinz Trading BV would be declared bankrupt.

It is yet to be seen how Koinz Trading BV responds to the hearing, however, the more interesting part is that a government acknowledges a bitcoin-based transaction even though it is yet to lawfully accepted by a large number of governments worldwide. If anything, this incident invites hope, that in the future, cryptocurrency will be gradually accepted on the part of the government.

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