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Australian Court Accepts Cryptocurrency as Security for Legal Costs

An Australian court accepts $20,000 Australian dollar (AUD) in a cryptocurrency account from the defendant as a security to cover potential legal costs. According to the court, cryptocurrencies are volatile but recognized as a form of investment, reports Bitcoin news on February 27, 2020.

Australian Court Accepts Cryptocurrency as Security for Legal Costs; New South Wales District Court Grants Defendant’s Request

Per the report, the New South Wales District Court, while hearing a defamation claim, granted a defendant’s request to make the plaintiff pay $20,000 AUD ($13,000 USD) into a court-controlled bank account. And this amount will cover some of the defendant’s legal costs if the plaintiff loses or drops the case. However, the court allowed the plaintiff’s $20,000 AUD held in a cryptocurrency exchange account to serve as the security.

Reportedly, Judge Judith Gibson said cryptocurrencies are volatile but they are still a recognized form of investment. “I can see the desirability of the defendant receiving prompt notification of any drop in the value of the account. These are uncertain financial times,” she added.

Account Evaluated in AUD but Digital Money is Unstable

On the other hand, though the exchange account might be evaluated in Australian dollars, the digital money it holds is unstable, the defendant’s lawyer expressed. Further reports reveal that the plaintiff has signed an undertaking to send statements of the exchange account to the defendant’s lawyer every month. They will also have to notify the lawyer if the value held in the account is less than $20,000 AUD.

Australia is Among Countries Fostering Crypto Adoption

Australia, on the other hand, is among developed countries fostering the adoption of cryptocurrencies. The country has set crypto-friendly regulations to encourage companies focused on this industry. Australia treats this asset class as property subject to capital gain tax. Agnes Water and 1770 are two towns in Australia that are actively fostering crypto adoption. And visitors in these towns can pay for tours using cryptocurrencies.

Australia’s Financial Regulator Approves 312 Crypto Exchanges

In August 2019, the number of registered and licensed cryptocurrency exchanges in Australia had hit 246. Australian Transaction Reports and Analysis Centre ( AUSTRAC), the country’s financial regulator approved these exchanges. And by February 2020, the number was 312.

Crypto-related companies are also striving to foster the adoption of blockchain and cryptocurrencies in the country. An instance is Helio Lending, an Australian company that issues loans backed by cryptocurrencies. Customers of this platform can borrow between $1000 and $5 million.

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