Category Archives: legal

Auto Added by WPeMatico

Chinese Supreme Court Says Blockchain Can Be Legally Binding

China‘s Supreme Court set an international precedent Friday by adjudicating that blockchain evidence can be seen as legally binding in court, effective immediately.

The decision comes with the minor caveat of courts requiring both parties in each case to provide evidence that blockchain technology was legitimately used in the manner they claim.

The ruling puts an end to any uncertainty surrounding the legality of blockchain-backed evidence provided during proceedings. The Chinese Supreme Court cited this as including ”digital signatures, reliable timestamps, and hash value verification or via a digital deposition platform”.

Companies that offer these services may well expect to see a growth in their number of clients given the added value in being legally recognized, particularly in cases where their intellectual or creative property can be protected by a blockchain platform as it is usually the more economical choice.

Setting a national standard

Since the first internet court was established in Hangzhou, China last year to deal specifically with internet-based disputes usually involving digital data, a number of questions regarding how and where blockchain evidence can be used have emerged.

In June this year, a copyright infringement case saw blockchain accepted as evidence in the deposition as legally viable with the judge commenting, ”We can’t exclude it just because it’s a complex technology. Nor can we lower the standard just because it is tamper-proof and traceable.”

In this specific case, the main question was whether the plaintiff’s blockchain-backed evidence could be seen as proving the authenticity of their work, in a similar way to a traditional notarization service. The judgment approved that it could indeed, due to the fact that the Bitcoin and Factom blockchains used in the case first hash all content uploaded, then store this on a distributed network.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Chinese Supreme Court Says Blockchain Can Be Legally Binding appeared first on BitcoinNews.com.

Law Expert Advocates for Blockchain Use in Legal System

In an article for Lawyer Monthly, legal technology expert Paul Sachs advocated for the use of blockchain in the legal system and court proceedings, focusing on the UK in his discussion.

Sachs preceded his in-depth analysis of how blockchain could be utilized by stating a necessity for substance to be included in the growing discussion around the technology’s potential use cases; his analysis does just this.

Increased security

The most significant contribution of blockchain in law, as Sachs sees, it is the potential it has in transforming security and protecting evidence during a trial. He notes that the UK courts are currently going through a GBP 1 billion modernization effort partially focused on digitizing processes to increase work efficiency.

For courts to move away from paper, instituting new technology poses a risk, especially in that digital evidence can be altered. Sachs writes that particularly when there is a long time between the original submission and the court date, data must be provably fully compliant with security and business processes.

The solution: an immutable network of evidence that can be presented in a courtroom with no questions as to the authenticity of the data. These are the strongest features of blockchain by design.

Blockchain may be a public artifact, Sachs discusses, but legal evidence would not be revealed to the public, merely IDs and hash codes. He writes: ”In this way, it becomes an incorruptible digital ledger.” Each transaction of the evidence would be recorded on the blockchain, while the evidence itself would remain completely private.

This removes the opportunity for any wrongdoers to forge documents or edit photographs once the evidence has been uploaded to the blockchain. It also could be just the beginning of further innovation in the legal sector with security now guaranteed, as Sachs outlines.

Blockchain in the UK

Sachs’ vision for blockchain in the legal system may well be established given the UK Financial Conduct Authority’s (FCA) blockchain bullishness. It recently announced the establishment of a collaborative entity, the Global Financial Innovation Network (GFIN), to pursue innovations.

The network’s purpose is founded on the concept of establishing a global blockchain knowledge-sharing “sandbox”.

The Bank of England has also nearly finalized its Proof of Concept (PoC) project that is looking to establish a Real Time Gross Settlement (RTGS) service to meet new financial challenges emerging from the changing landscape.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay

The post Law Expert Advocates for Blockchain Use in Legal System appeared first on BitcoinNews.com.

India’s Biggest Tax Filing Platform Helps Crypto Investors: Is It Enough?

India’s largest tax filing platform, Cleartax, is attempting to simplify the country’s currently complex tax policies regarding cryptocurrency.

Having the legal framework to tax virtual currency revenue in an accessible way for cryptocurrency investors is fundamental to the ongoing process of legitimizing the currencies in the mainstream.

Regulations?

One of the factors preventing a more widescale adoption of cryptocurrencies is the lack of accessible information regarding the legality and practicality of cryptocurrency holdings and profits. Indeed, each country has different legislation regarding this if there are any policies in place at all. The government in India refuses to recognize cryptocurrencies as legal tender but has not regulated the industry nor denounced it as illegal.

Despite this lack of implemented regulations, the formal taxation policy requires cryptocurrency investors to pay taxes on their earning. In December 2017, the income tax authorities of India visited and surveyed the nine largest cryptocurrency exchanges in the country to ensure there was no tax evasion occurring. The surveys were conducted under the rights of section 133A of the Income Tax Act, which the government states is applicable regardless of the legality of Bitcoin.

The outcome of these visits found USD 3.5 billion worth of transactions having been conducted over a 17-month period via the exchanges. The income tax department proceeded in issuing tens of thousands of tax notices to investors. The report produced from the surveys also found the industry was adding an estimated 200,000 participants in India every month.

Despite the ambiguity from the government of India on cryptocurrency regulation, it has clearly stated if you are profiting from cryptocurrency holdings, taxes must be paid on them:“[W]e aim to clear the air around [the taxation of] digital currencies”.

Cleartax founder and chief executive Archit Gupta recently spoke out on the collaboration with cryptocurrency exchange platform Zebpay, outlining their plan to assist investors with filing taxes on their virtual currency profits.

Their Cryptocurrency Taxation Advisory service intends to educate taxpayers on the taxation laws surrounding cryptocurrencies. The additional service for Tax Filing For Gains From Cryptocurrency is also available on their website. The services are accessible to both businesses and individuals profiting from virtual currencies.

In recent months the Indian authorities continued to freeze bank accounts belonging to cryptocurrency exchanges, muddying the water further for those with cryptocurrency holdings. Despite the collaboration between Cleartax and Zebpay, without official policies from the government, there remains a lack of clarity for those in India profiting from cryptocurrency holdings.

 

 

The post India’s Biggest Tax Filing Platform Helps Crypto Investors: Is It Enough? appeared first on BitcoinNews.com.

Kashmir Hill – Federal Judge Rules Bitcoin Is Real Money

Kashmir Hill – Federal Judge Rules Bitcoin Is Real Money:

Forbes.com contributor Kashmir Hill (@KashHill) highlights a new development regarding ways existing laws can be applied to Bitcoin-related activity.  Excerpts:

“In defending himself against the SEC suit, Shavers argued that Bitcoin isn’t actually money and that the SEC shouldn’t be able to prosecute him.”

“‘Shavers also contends that his transactions were all Bitcoin transactions and that no money ever exchanged hands.’”

“‘It is clear that Bitcoin can be used as money,’ writes Judge Mazzant in a ruling on Tuesday. ‘It can be used to purchase goods or services, and as Shavers stated, used to pay for individual living expenses.’”

”’[Bitcoin] can also be exchanged for conventional currencies, such as the U.S. dollar, Euro, Yen, and Yuan,’ writes Mazzant. ‘Therefore, Bitcoin is a currency or form of money, and investors wishing to invest in BTCST provided an investment of money.’”

 – http://onforb.es/14z4dAx
 – http://bitcointalk.org/index.php?topic=269612.0 (Futher discussion of this legal memorandum)

All News – Daily E-mail Subscription – Twitter: @BitcoinNews