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Cryprocurrency and Abandoned Property Laws

 
 
gollum
 
Reply Sun 6 Jun, 2021 07:09 pm
If someone buys a security or other asset and then forgets about it, the issuer reports it as Abandoned Property and then in due course pays the value to the relevant State Treasury.

Thus though the forgetful individual loses the security, its value is in effect transferred to the taxpayers of the State as Abandoned Property.

Now, there is something called cryptocurrency.

If I buy some cryptocurrency, then forget about it. Does someone (i.e., the issuer) report it to the State as Abandoned Property? And later pay its value to the State as Abandoned Property?

Who is the Issuer?

If the buyer never redeems his cryptocurrency does the entire issuance become profit to the Issuer?

Does the Department of Abandoned Property of the relevant State take action to cause the Issuer to pay the proceeds to it?
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oralloy
 
  0  
Reply Mon 7 Jun, 2021 09:05 am
gollum wrote:
If I buy some cryptocurrency, then forget about it. Does someone (i.e., the issuer) report it to the State as Abandoned Property? And later pay its value to the State as Abandoned Property?

Perhaps, if you left it in an account controlled by an organization or exchange.

If you transferred it into your wallet, then it stays in your wallet until you (or someone else who has access to your wallet) transfer it elsewhere.


gollum wrote:
Who is the Issuer?

Whoever you bought it from.


gollum wrote:
If the buyer never redeems his cryptocurrency does the entire issuance become profit to the Issuer?

Perhaps, if you left it in an account controlled by an organization or exchange.

If you transferred it into your wallet, then it stays in your wallet until you (or someone else who has access to your wallet) transfer it elsewhere.


gollum wrote:
Does the Department of Abandoned Property of the relevant State take action to cause the Issuer to pay the proceeds to it?

Perhaps, if you left it in an account controlled by an organization or exchange.

If you transferred it into your wallet, then it stays in your wallet until you (or someone else who has access to your wallet) transfer it elsewhere.
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engineer
 
  2  
Reply Mon 7 Jun, 2021 09:51 am
@gollum,
I imagine that since cryptocurrency is outside the jurisdiction of any country that no property laws apply to it.
oralloy
 
  1  
Reply Wed 9 Jun, 2021 04:59 pm
@engineer,
Does the government agree that cryptocurrency is outside its jurisdiction?
Mame
 
  1  
Reply Wed 9 Jun, 2021 05:07 pm
@oralloy,
Not in Canada. As of 2014, our financial advisor advised us that it had to be reported on our income tax. How they'd know what I'd lost or made I have no idea, but they did put that out there 7 years ago.
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