For the very first time in Europe and one of only a few instances in the world, a French court decision characterises the legal status of a digital currency (bitcoin). This decision was published in the second division of the National Court of Justice of France. The court of first instance in this case found that the legality of the currency was a matter of law and could not be left to the mere subjective judgment of an employee of the firm that handled the trading and investment activities of the company.
This decision is an important precedent that may lead to a European Union regulation to protect the legal status of digital currencies as well. This regulation would apply to all currency exchanges across the EU and its derivatives such as futures contracts. If the regulation passes, then it will make it so that businesses that deal with any kind of digital currency would need to register themselves with a financial institution, as well as obtain a license to trade in that currency. That would effectively put an end to those who deal solely in one currency and also prevent them from trading in both.
There are still a number of issues, however, that must be addressed before any regulation passed by the European Union on the legal status of digital currencies will be enforced. Among them are concerns about privacy and the possible infringement on freedom of speech. If the ruling is passed, then it may put an end to the entire industry. On the other hand, it is also possible that the regulation may lead to more regulation on the industry itself.
It is also worth noting that the European Union already regulates digital currency exchanges, specifically through the Money Laundering Regulations. This regulation is designed to help protect the general public from scams. Since many of these transactions are conducted online, this means that many individuals’ personal data could be accessed and even misused by unscrupulous online vendors. The European Union’s decision will have a dramatic effect on how the general public perceives this practice of dealing with currency exchanges.
There are also some technical details that need to be clarified in terms of how a proposed European Union regulation would fit into the landscape of today’s world of currency exchanges and markets. Although much is known about how a regulation like this would work in the future, many questions remain.
While the decision on the legality of the use of virtual currencies in the European Union is a major development, more questions are still being raised as to the validity of the existing regulation. The current rules of conduct of virtual currency exchanges may no longer apply, which means that the existing rules are likely to be thrown out of the window. Many are speculating that the rules may be altered so that only people and entities that actually exist on the actual physical exchange platform will be considered as legal parties. There are several ways that this could happen, but it would require an amendment to the existing rules or an outright replacement for the current system.