7
3
Does Bitcoin have legal status as a corporation? If so, what kind, and in what jurisdiction(s) is it registered?
Is Bitcoin a corporation?
Answers
12
No. The whole point of Bitcoin is that it is decentralized and there is no single corporation behind it.
1
The debate of bitcoin in the legal system is just in the beginning. It's not even that clear (worldwide) whether bitcoin is legally consider money or not. Up to now, most of bitcoin space is unregulated (including the issue of corporation status).
But this doesn't mean that it will be unregulated forever. Nobody knows what the future holds, maybe one day the government might decide to debate whether miners should be responsible for bitcoin issues (as one day happened with Napster, Torrent and several other internet sectors).
So there's no liability protection or "conventional" official benefits from corporate structures? – corporeal – 2015-11-08T15:54:59.110
@corporeal: Correct. – Murch – 2015-11-08T16:05:07.923
8I'd say it's not so much that there is no liability protection, but rather that the concept doesn't apply. "Bitcoin" can't be liable for anything, so there's no liability to protect from. Bitcoin can't have revenues or expenses, either. People using Bitcoin might have liabilities, assets, P&L, but it's up to them to decide which legal entity to use for these. – Meni Rosenfeld – 2015-11-08T16:17:25.137
So, if Bitcoin value suddenly tanks, each user is liable for their own losses independently? – corporeal – 2015-11-08T16:35:07.413
10@corporeal: Yes, certainly. Your question is kind of like asking if copper is a corporation. If the market price of copper drops, everyone who owns supplies of copper will lose value. No corporation is responsible for this. – Nate Eldredge – 2015-11-08T16:56:26.297
Thanks @NateEldredge that clears it up for me pretty much perfectly! – corporeal – 2015-11-08T17:20:16.410
2You may have a claim against whoever sold you the bitcoin, depending on the regulations and jurisdiction. – Brad Thomas – 2015-11-08T21:25:09.980
1The Internet might be a better comparison. If the Internet disappears tomorrow, you might have actions against particular people or companies for particular promises they made to you. But you can't have an agreement with "the Internet". You can't use the Internet. – David Schwartz – 2015-11-10T00:12:24.180
1@DavidSchwartz: Should that have been "you can't sue the internet"? Because I use the internet just fine. – Meni Rosenfeld – 2015-11-10T12:16:12.073
@MeniRosenfeld Yes. Too bad you can't edit comments after five minutes. :( – David Schwartz – 2015-11-10T17:28:30.513