In the case of fraud involving Bitcoin, the Federal Court of D.C. states that Bitcoin is money according to its standards.
A DC federal court has just stated that Bitcoin is money. Specifically, the decision concluded that BTC is covered by the Washington, DC Money Transmitters Act.
The reason for this decision came from the federal courts in a case of fraud and money laundering that involved Bitcoin. Larry Dean Harmon was running an underground Bitcoin trading platform and was arrested in early 2020.
He was accused of operating a business without a license under D.C. law and for money laundering under federal law.
Harmon is being accused of using his platform as a way to disguise drug and weapons transactions. Its darknet platform reportedly moved $ 311 million between 2014 and 2017, according to the indictment.
In terms of the amount of BTC involved, the court denied a motion to return 160 Bitcoin seized from Harmon. The judge, Beryl A. Howell, says the reason for denying the motion was that the BTC was probably involved in criminal transactions.
Harmon was making hundreds of millions of dollars in transactions using Bitcoin, but now that he’s in trouble, he’s making an interesting claim. His defense was trying to suspend the case by arguing that Bitcoin is not money under the Money Transmitters Act, so its platform could not be an illegal business.
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But the court refused to suspend the case. Judge Beryl A. Howell wrote on behalf of the U.S. District Court for the District of Columbia that Bitcoin is within the criteria of the Money Transmitters Act.
Howell said the idea of money “generally refers to” a form of payment, currency of exchange or reserve of value. And according to Howell and the courts, “Bitcoin is it”.
This is the last positive news that the cryptocurrency community has received on the legislative front. Shortly before, it was announced by the Office of the Currency Controller that banks could go ahead and offer custodial cryptocurrency services. And legislative news is not the only positive thing that the crypto universe has heard recently. Visa and PayPal have also just announced their future intentions in the crypto universe.
The general feeling is that leading companies and institutions are moving towards Bitcoin and blockchain. Most experts call for some form of favorable regulation and these moves are expected to introduce new faces in Bitcoin and other cryptocurrencies. And if more people are entering the world of cryptocurrencies, this is a positive thing.