A bitcoin speculator sued the Huobi exchange to recover 400,000 yuan he lost while exchanging.
Wang Tieliang documented a claim against Huobi and its two patners in Beijing to negate his bitcoin exchanges on the trade. As per Wang’s statement, he deposited 1.4 million yuan to speculate on bitcoin in October of 2016. In any case, inside a couple of months, he couldn’t deal with the strain of the market to see himself losing cash, and he finally liquidated all out.
The offended party told the court that his exchanges at Huobi ought to be invalidate on the basis that bitcoin doesn’t exist:
Bitcoin does not exist and isn’t a lawful delicate. Marxism says that a product ought to have a price and value and bitcoin cannot be categorized as a product or commodity. Moreover, bitcoin isn’t a genuine money for it isn’t issued by the national bank (central bank). In this way, it shall not be utilized to exchange or as a payment technique.
Moreover the exchange stated that Wang doesn’t ubderstand what bitcoin is. Also, it’s not Huobi that exchanged with him, its different clients at the platform. Huobi just fills in as a third party that has been working legitimately. Huobi included that the price of bitcoin is chosen by the market, not by the plarform.
Another two Beijing-based organizations argued that they just enable Huobi to get clients’ deposits. Thus, they don’t have anything to do with Wang’s loss.
The Court Judgment
The People’s Court of Haidian District, Beijing disqualified the claim, saying financial specialists (investors) should to be in charge of their own losses. The court judgment clarified:
At the point when clients exchange bitcoin they should completely comprehend relative risks and rewards concerning it. They should invest only the sum of money they can stand to lose and attempt all obligations.
The court judge noticed that bitcoin isn’t a commodity. It has no use value. The PBOC has no privilege to characterize bitcoin as a virtual item. Also, Huobi has no privilege to exchange bitcoin. It can just offer exchange or trading services.
Is Toronto Next to Accept Bitcoin for Property Taxes?
Toronto is the biggest city of Canada with a population of more than 6 million. It’s also one of the leading global financial centers which makes it an attractive place for investors.
Bitcoin has emerged as the leading cryptocurrency in the world and attracted a lot of attention from financial investors. There are many crypto exchanges and investors in Toronto, which makes it an important destination for crypto startups and investors.
Recently, there has been a surge in usage of Bitcoin in the Real Estate world as lot of companies around the world are now accepting Bitcoin for buying and selling of properties. In April 2019, Innisfil, A town located in Ontario, at a distance of about 1 hour drive from Toronto, announced that they will accept Bitcoin for property taxes at the municipal level. In July this year, Richmond Hill announced that they are ready to accept Bitcoin as a payment method for property taxes.
Evan Kuhn, Co-Founder of a Toronto based crypto exchange Coinberry believes that integration of Bitcoin as a payment method for property taxes in Toronto can reduce cost, not only for tax payers, but for municipalities as well. Kuhn mentioned
“It doesn’t cost homeowners to use the service, and it costs the municipalities far less in processing fees”
“A credit card company charges a 3% fee,” he said. “Our fee is .5%, so that’s a lot more beneficial for the municipalities.”
He further explained the entire process to make it simple for the users and for the authorities. “When a resident makes a payment through our exchange, the company immediately converts the Bitcoin into Canadian Dollars and pays the relevant authority, so in basic concept this entire process works like a credit card system but with lower fee for both parties”
Morning Crypto Roundup
- Crypto market entered into a consolidation phase, with market cap at around $265 billion, market is currently trading in a range
- Bitcoin stays above $10,000
- Gray scale reported in a recent report that there are 7.1 million active Bitcoin users worldwide with more than 32 million Bitcoin wallets.
- After Innisfil and Richmond Hills, is Toronto next to explore an opportunity to pay property taxes through Bitcoin?
- According to a report from CryptoCompare.com, Untrusted crypto exchanges are dominating the crypto volume with more than 2/3 share