A Florida Judge To Decide Whether Bitcoin Is A Money Or Not?

Bitcoin Hacker Sentenced

In its first of its kind money laundering case, it will be decided in the Florida court that whether bitcoin is an actual currency. The Michel Espinoza was arrested in February 2014 who agreed that he sell $30,000 worth of bitcoin to an undercover police officer. He said that they met on an exchange website known as LocalBitcoins.com.

According to the prosecutors, the Michel violated the Florida statutes on the money laundering. They also charged that he operate on an unlicensed money transmitting business, but the defense has an argument that all these laws applied on the currencies, not on the bitcoin.

The attorney Rene Palominto Jr. further said that it is like you are selling your own property in a court filing. The Espinoza;s alleged conduct should be excluded from the money transmitter definition because bitcoins are goods under the both federal as well as state law.

A partner at Manatt, Phelps & Philips Carol Van Cleef said that these same kind of definitional issues that Florida as well as other states are dealing with. The state government bodies are addressing this question in many different ways.

A bill in North Carolina’s legislature was passed on Monday to modify the money transmitters definition to account for virtual currency companies. The matter was taken into their own hand by the financial regulator of New York when they create BitLicense, that acknowledges that bitcoin is value store.

This case could serve as an example for the other states as well as Florida. The digital advocates Boring said that in case the rules passed by the judge in Florida, it would only be applied in that state. He further said that this can be used by the other states as a persuasive material in their own legal legislation to make decisions. There is a great chance that the case will be litigated after the ruling of Pooler. The trial is confirmed by both the parties, in case they lost.

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1 Response

  1. July 5, 2016

    […] new bill replaces the current article pertaining to money transmission licenses, incorporating much of the existing law and explicitly identifying currencies such as bitcoin as […]

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