Bitcoin becomes a real currency
A US court has ruled that is a legitimate currency, a decision that will open up the possibility for the digital to be regulated by government legislators.
Magistrate Judge Amos Mazzant for the Eastern District of Texas reached the decision on Tuesday, according to the RT.com website.
The ruling will allow the US Securities and Exchange Commission (SEC) to proceed with a lawsuit against a Bitcoin-based hedge fund operator.
Trendon Shavers of Bitcoin Savings & Trust was last year accused of scamming customers out of $4.5 million (€3.15 million) worth of the currency through an online hedge fund. According to the federal complaint, Shavers promised investors a weekly return of 7%, but shut down the site after gathering over 700,000 Bitcoins.
The new ruling will allow SEC to pursue the case because, despite existing in the digital realm, 'Bitcoin is a currency or form of money'.
'It is clear that Bitcoin can be used as money. It can be used to purchase goods or services, and as Shavers stated, used to pay for individual living expenses,' Mazzant added.
“The only limitation of Bitcoin is that it is limited to those places that accept it as currency. However, it can also be exchanged for conventional currencies, such as the US dollar, Euro, Yen and Yuan.
'Therefore, Bitcoin is a currency or form of money, and investors wishing to invest in BTCST provided an investment of money.'
Mazzant also stated that Bitcoin investments 'meet the definition of investment contract, and, as such, are securities'.