The UK’s High Court has legally recognized Tether (USDT) as property under English law, marking a significant precedent for cryptocurrency regulation amidst a fraud recovery case.
In a historic turn of events, the UK’s High Court on September 13 gave a key ruling, the stablecoin Tether (USDT) is legally recognized property under English law. This decision comes amidst the lawsuit proceedings involving fraud victim Fabrizio D’Aloia, who sought to recover stolen USDT.
This ruling comes as the first full judgment on the case of Cryptocurrencies in the UK. It outlines the legal status of cryptocurrency, following recent legislation aimed at clarifying digital asset laws.
During the proceeding, Deputy Judge Richard Farnhill stated that Tether attracts property rights similar to other forms of property and can be subject to tracing and trust claims. However, the statement on the case of D’Aloia is that it could not conclusively prove that the Thai crypto exchange BitKub had received his stolen Tether due to obscured fund flows through crypto mixers.
If you look at the history of intellectual and personal property laws in the UK, especially on cryptocurrencies, this one aligns with the 2023 England and Wales Law Commission report that classified digital assets as property. In light of the new law, it is clearly mentioned the importance of clear evidence in cryptocurrency claims.
Furthermore, the UK High Court’s ruling comes at a time when the UK government introduced new legislation defining digital assets, including NFTs and cryptocurrencies, as personal property under UK law.
As the new laws are now in place, the Financial Conduct Authority (FCA) has also strengthened regulations for crypto firms, requiring registration and compliance with anti-money laundering measures, as well as clear risk warnings for customers. All this comes as a big strengthening point to the digital currency markets which were uninsured and in deep waters. After this momentous decision, the mindful ownership of cryptocurrency, as well as the fraud around it, will also curb.