the court resolves a dispute over a loan in Bitcoin

In Canada, a case about a loan in Bitcoin goes to court, with the Supreme Court of British Columbia ordering the repayment of 1.2 million dollars. 

Canada and the loan in Bitcoin: the court orders the repayment of 1.2 million dollars

In Canada, the judge Fitzpatrick has issued his ruling on a dispute case involving a loan in Bitcoin. 

“Mr. Nguyen is awarded damages against Mr. Tambosso amounting to 1,240,106.22 dollars. Mr. Nguyen is also awarded legal interest on the above sum starting from September 24, 2021”

Specifically, the Supreme Court of British Columbia has ordered the payment of a refund of 1.2 million dollars. This solution seems to testify to a growing acceptance of crypto at a legal level. 

In this regard, in fact, the judge would have stated that this case concerned an “old-fashioned cause of action” but with “a modern twist”, given that the loan to be repaid was in Bitcoin.

The case saw the complainant Hung Nguyen having lent some Bitcoin to Daniel Tambosso, to support him in an initiative he was carrying out. This loan in Bitcoin occurred legally. 

Specifically, on September 21, 2021, together with their respective lawyers, Nguyen lent Tambosso 18 Bitcoin. Not only that, within 24 hours, Tambosso requested another 7.5 BTC from Nguyen, but the latter agreed to lend (always legally) another 4 BTC. 

The contract provided for a repayment of the loan in BTC within 48 hours. The judge’s ruling is therefore based on the terms of the contract, indicating that the defendant had to return the original 22 BTC within the agreed terms. 

Canada and the case on Bitcoin loans: a start of general crypto acceptance?

This case on the loan in Bitcoin should represent a beginning of the legal acceptance of crypto in Canada. 

Recently, however, a survey by the Bank of Canada, revealed that the country remains loyal to cash payments, rather than adopting crypto. 

In fact, the Canadians argue that to incentivize the creation of a broad crypto economy, it is first necessary to create the conditions to promote technological innovation. 

From what has emerged, in fact, only less than 3% of Canadians have revealed using Bitcoin and other crypto for daily transactions in two years. 

Indeed, in 2023, 80% of citizens carried with them some amount of cash, demonstrating an attachment to physical payments. 

It appears evident that in the vast North American country, citizens are anchored to traditional payments in cash and bank cards, with difficulty embracing alternatives. 

The registration of Coinbase in the Country

Last April 2024, the authorities of Canada granted Coinbase a registration as a “restricted dealer”, allowing the crypto-exchange to operate in the country.

With this license, Coinbase has since become the largest cryptocurrency exchange registered in that jurisdiction. 

Given the general situation in the country, Coinbase had stated its intention to collaborate with Canadian partners to accelerate the adoption of digital assets, promote economic empowerment, and reform the financial system. 

As of today, however, while on one hand the ruling on Bitcoin loans represents a first step towards legal openness to crypto, on the other hand adoption is still very low.