A Miami-Dade judge ruled Monday that Bitcoin is not actually money, a decision hailed by proponents of the virtual currency that has become popular across the world.In a case closely watched in financial and tech circles, the judge threw out the felony charges against website designer Michell Espinoza, who had been charged with illegally transmitting and laundering $1,500 worth of Bitcoins.He sold them to undercover detectives who told him they wanted to use the money to buy stolen credit-card numbers.But Miami-Dade Circuit Judge Teresa Mary Pooler ruled that Bitcoin was not backed by any government or bank, and was not “tangible wealth” and “cannot be hidden under a mattress like cash and gold bars.” “The court is not an expert in economics; however, it is very clear, even to someone with limited knowledge in the area, the Bitcoin has a long way to go before it the equivalent of money,” Pooler wrote in an eight-page order.The judge also wrote that Florida law — which says someone can be charged with money laundering if they engage in a financial transaction that will “promote” illegal activity — is way too vague to apply to Bitcoin.

“This court is unwilling to punish a man for selling his property to another, when his actions fall under a statute that is so vaguely written that even legal professionals have difficulty finding a singular meaning,” she wrote.The ruling was lauded by Bitcoin experts who believe the ruling will encourage the use of the virtual currency, and offer a roadmap to governments across the world that have struggled to understand and regulate it.Espinoza’s attorney, Rene Palomino, said the judge’s order was “beautifully written.” “At least it gives the Bitcoin community some guidance that what my client did was not illegal,” Palomino said.“What he basically did was sell his own personal property.Michell Espinoza did not violate the law, plain and simple.” A spokesman for the Miami-Dade State Attorney’s Office said: “We are presently reviewing the court order to determine whether we will be appealing this decision.” Law enforcement has struggled to figure out how Bitcoin fits into illegal activities, and Espinoza’s case was believed to be the first money-laundering prosecution involving the virtual currency.

The controversial virtual currency allows some users to spend money anonymously and it can be also be bought and sold on exchanges with U.S.dollars and other currencies.The currency has gained popularity with merchants selling legitimate goods and services.In Miami, there are a few restaurants that accept the virtual currency — and even a plastic surgeon.Regulated services such as CoinBase, which operates similarly to PayPal, allow people to buy, sell and use the Bitcoins.dell bitcoin largestBut authorities have raised concerns about the currency being used in the anonymous black market.legit bitcoin pokerMost notoriously, Bitcoins were used to traffic drugs in the now-shuttered Silk Road network.ice vault bitcoinIn an unrelated South Florida case, a Miramar man got 10 years in prison after using Bitcoins to buy Chinese-made synthetic heroin from a Canadian prisoner.bitcoin atm in korea

, and told him they were going to use the currency to purchase stolen credit-card numbers.The detectives met with Espinoza, 32, three times in person: on Lincoln Road, at an ice cream shop and in a hotel room.Espinoza was arrested along with another man, Pascal Reid, who pleaded guilty to acting as an unlicensed money broker and was sentenced to probation.Under his unusual plea deal, he agreed to teach law enforcement about Bitcoin.calle bitcoin madridAt a hearing in May, a defense expert, Barry University economics professor Charles Evans, testified that Bitcoin was not actually money.bitcoin replace by feeNo central government or bank backs Bitcoin, like the United States does the dollar.bitcoin 2800Government regulation of Bitcoin remains a messy hodgepodge from state to state, country to country.btc-e bitcoin withdrawal fee

The IRS considers Bitcoin deals no more than bartering, he said.“Basically, it’s poker chips that people are willing to buy from you,” said Evans, a virtual-currency expert who was paid $3,000 in Bitcoins for his defense testimony.The judge’s decision will help Bitcoin flourish in Miami and countries where banking system are tenuous, Evans said in an interview on Monday.“Bitcoin is perfect for small-scale cross-border transactions and we are international in this area,” Evans said.bitcoin satoshi faucet“If somebody from Venezuela needs a hammer, now that person can send Bitcoin to his cousin in Miami, that cousin can sell the Bitcoin, go buy the hammer and send it to Venezuela.” The ruling could also spark a push to tweak Florida law.Judge Pooler, in her ruling, said the state’s money-laundering law that targets transactions that “promote” illegal activity requires a “much-needed update.” “Hopefully, the Florida Legislature or an appellate court will define ‘promote’ so individuals who believe their conduct is legal are not arrested,” Pooler wrote.

Can you imagine going on holiday and buying your local currency for a few cents commission?This could well be the reality with Bitcoins in the not too distant future.Most Kiwis have no idea what a Bitcoin is.Think of it as simply another currency, such as dollars or Euros, that are exchanged peer to peer, bypassing the banks.Like all money, Bitcoin has a value because people are willing to exchange it.The value goes up and down according to supply and demand in the same way as paper money does.It's just stored electronically.If that doesn't make sense, check out my 2014 article here.My interest in this currency was sparked again when I stumbled upon young tech whizz Martin Stellnberger at the Finnotech conference in Auckland last November.Stellnberger was offering to sell $10 (US$7.96) worth of Bitcoin to a somewhat doubtful looking conference goer."I'll buy it," I interjected and five minutes later I had downloaded a Bitcoin wallet app onto my phone and done the deal.On Monday, that US$7.96 "investment" was worth US$15.15.

Stellnberger's motivation was to educate others about the potential uses of Bitcoin.In the ensuing conversation I had a eureka moment when he explained how Filipino migrant workers in the US were sending their earnings home electronically via Bitcoin.Their relatives convert the Bitcoin into local currency for about 1 per cent commission instead of large bank or money exchange fees.I send money to Uganda once a year for the school fees of one child (no, it's not a scam).Every time I do that a good chunk of the money is swallowed by Western Union in commission and fees.So this was terribly exciting.The possibility of sending that money virtually commission-free is a real one once Bitcoin exchange mechanisms mature.The exchange mechanisms are a bit Wild West-ish as well as being clunky - like the internet was back in the 1990s.In 2014 when I wrote my first article, Bitcoin's real-life uses were mostly limited to large-scale drug dealing and a spot of money laundering.You can buy other real-world things with Bitcoin now, including books, computer parts and services.

SHARE THIS QUOTE: reader, who didn't want to be named, transfers Bitcoin to his sister in the US.", which started accepting Bitcoin in 2013.Why would I do that?She gets the money within 10 minutes, it costs me around 40 cents to send and she also gets a discount for using Bitcoin."Stellnberger uses Bitcoin as a way of converting his New Zealand dollars into Euros when he goes back to his native Austria on holiday.This only really works, he says, in countries that have well-developed Bitcoin markets.I couldn't exchange my Bitcoin into Uruguayan Pesos or Thai baht unless I was willing to meet local dealers.That might not be safe, and there are more interesting things to do with your time.In future, I am sure it will be possible to change Bitcoin or other electronic currencies such as Ethereum into local currency at the airport or from cashpoint machines.Or retailers and even market stalls may eventually start accepting payment directly in Bitcoin.Restaurants in some countries are already taking it as payment.

I like the idea of pulling out my smartphone, scanning the restaurant's QR code and paying directly in Bitcoin instead of local currency or Visa/Mastercard.The real advantage would be avoiding those offshore margins and unfavourable conversion rates offered by banks and credit card companies.The problem is we're a bit backward here in New Zealand and buying Bitcoin is difficult and expensive. is probably the best known exchange where Kiwis buy Bitcoin.The graph can be viewed at coin.dance/volume/localbitcoin., which allows Kiwis to set up a direct debit to save Bitcoin into their personal wallets.But the fees are quite high and the marketing that includes the words "set forget and watch it grow" fails to mention that currencies can fall just as easily.The real problem with both is charges. take quite a high margin and myBitcoinsaver charges 2.5 per cent commission plus a "delivery fee", which partially defeats the purpose of Bitcoin exchange being cheap.In the US and Europe it's possible to link your bank account to your Coinbase or other digital wallet and shift between $US or Euro and Bitcoin easily with no or minimal fees.