Singapore Court Rules Crypto Not Money
The Singapore High Court has ruled that cryptocurrency cannot be recognized as money in a recent case involving the Algorand Foundation and Three Arrows Capital. The case, which saw the Algorand Foundation applying to wind up Three Arrows Capital with a claim of 53.5m USDC, highlights the complexities of crypto assets in the legal system.
Central to the case was whether the USDC claim is considered to be a “sum of money,” which would determine if Algorand was a creditor and could proceed with its application. Algorand argued that just like crypto, foreign currencies are not legal tender, nor widely accepted or…
— Wu Blockchain (@WuBlockchain) April 16, 2023
USDC not Legal Tender
According to the Business Times, the judge stated that while cryptocurrencies like USDC have some characteristics of money, they are not considered legal tender in Singapore, and therefore cannot be considered money under Singaporean law. This ruling has significant implications for the crypto industry in Singapore and could impact how future disputes involving crypto assets are settled in court.
The case is just one of many examples of the challenges presented by the legal system when it comes to crypto assets. As the use of cryptocurrencies continues to grow and become more mainstream, regulators and lawmakers around the world are struggling to keep up with the legal implications of these new forms of digital currency.
Need for Clear Legal Frameworks
Despite the challenges, many believe that cryptocurrencies have the potential to revolutionize the financial industry, making transactions faster, cheaper, and more efficient. However, the lack of regulatory clarity and legal frameworks is hindering the growth of the industry and leading to uncertainty for businesses and investors.
As such, it is crucial that regulators and lawmakers work together to establish clear legal frameworks for crypto assets. Only then can the industry truly thrive, and investors can have confidence in the security and stability of their investments.
In the meantime, businesses and investors operating in the crypto industry must remain vigilant and ensure that they are complying with all applicable laws and regulations. With the legal landscape constantly evolving, it is essential to stay up to date on the latest developments and seek expert advice when needed.