Key facts:
Since 2023, the United Kingdom recognizes the Bitcoin ecosystem as a financial activity.
The court considers that USDT can constitute property, as is the case with other assets.
The UK High Court has officially recognised USDT, the stablecoin of Tether Limited, as a form of property.
In a court document In the case between citizen Fabrizio D’Aloia and several cryptocurrency companies, Judge Richard Farnhill He stated that “USDT attracts property rights under English law.”
Also, that USDT “is a distinct form of property with no underlying legal right, and may constitute fiduciary property just like other assets.”
“This is not a choice in action or a choice in possession, but rather a distinct form of ownership that is not based on an underlying legal right. (USDT) can be traced and can constitute fiduciary property in the same way as other assets.”
Judge Richard Farnhill.
Judge Farnhill addressed the case of D’Aloia, who alleges having been the victim of a £2.5m fraud. For this reason, he sued several cryptocurrency companies, including the exchanges Binance, Polo, Gate, and BitKub.
Like any other asset
This legal recognition means that USDT can be treated like any other asset in terms of inheritance, litigation, and transactions. The ruling could facilitate the integration of USDT into traditional British financial systems, opening the door to its use in contracts, trusts, and as collateral in loans in that country.
On a global level, this precedent may influence how other countries regulate cryptocurrencies, while increasing confidence in stablecoins, encouraging their adoption and possibly accelerating the regulation of other cryptoassets. This is even if there are investors who think these assets are not here to stay.
This ruling occurs in a context where the Kingdom The United Kingdom has shown a willingness to regulate cryptocurrencies and the recognition of these as personal property, as CriptoNoticias reported this week.
Added to this is the Financial Services and Markets Act, passed in June 2023, which recognises cryptocurrency trading as a regulated financial activity and promotes the creation of “sandboxes” for financial companies in the sector.
Regulation in the UK also includes anti-money laundering and anti-terrorist financing obligations for crypto-asset businesses, and the implementation of specific taxes on cryptocurrencies, which demonstrates a deeper integration of cryptocurrencies into the legal and tax framework.
The recognition of USDT as property in the UK not only marks a milestone for Tether and its users, but could also be a catalyst for further integration and regulation of cryptocurrencies in the global financial ecosystem.
This article was created using artificial intelligence and edited by a human on the editorial staff.