In the words of the Honorable Justice A. Barak, Other Municipality Applications 6821/93 United Mizrahi Bank in Tax Appeal v. Migdal Kfar Cooperative, IsrSC 49(4) 221:
"The concept of 'kinyan' has different meanings, according to the context in which it appears. It seems that on the constitutional level, the right to protect property is at the foundation. Kinyan is any interest that has economic value. Therefore, the property extends not only to 'property rights' (in the sense given to them in private law - such as ownership, rent and usufruct) but also to obligations and rights of property value acquired under public law."
- Before discussing the question of whether a particular material is property or evidence, when it comes to materials that exist in the virtual space, as opposed to the real one, it is necessary to start with a self-warning. If in the past the distinction between evidence and information from the investigation file and property was dichotomous, simple, and visible, the accelerated technological developments in the form of a complete and parallel world that exists in cyberspace require a different approach. "Classical" concepts from the physical-physical world will not always be applicable in the virtual world, and vice versa. Therefore, it is necessary to address the question of whether the recovery kernels constitute 'digital property'. The exam must be adapted to the relevant context.
- There are a number of features that are necessary for the very definition of Bitcoin, without which there are no - these are constituent characteristics or defining features. The main features of Bitcoin are: decentralized records and relative anonymity. In this regard, I will refer to the article by the scholar Yonatan Yovel, "Cryptocurrencies: Conceptual, Legal and Regulatory Challenges", Din Ve-Devarim, vol. 16 (hereinafter: Yuval's article). According to Yuval: "A decentralized cryptocurrency, like Bitcoin, has no server, the network centers are PTP, it has no clearing, centralized and the registry is decentralized" (p. 472). However, it was immediately clarified that this was not a matter of decentralization at the level of power and control. Although the blockchain is completely visible and can be traced to every transaction that has ever taken place on it, the blockchain does not record the identity of the person holding the key (p. 476), which also shows the exclusivity of the key holder, along with a high level of fusion between the digital device itself and its value.
- In his article, Yuval addresses both the coins themselves, but also the access keys, and his method:
"Thus, the precise reference to cryptocurrencies at this time is not categorically as 'currency or non-currency', but rather as a bundle of proprietary, obligatory and regulatory affiliations that maintain a very high, possibly close to absolute, degree of merging between the artifact (in this case digital) and the value it represents. A "very high rank" is, among other things, legal: the holder of the coin (or the exclusive holder of a key, wallet or other code), or who is registered as its owner, enjoys a level of near-zero legal risk in the coin."
- According to Section 1 of the Legal Aid Law (Definitions Section):
"Object" - including a document, finances, computer material as defined in the Computers Law, 5755-1995, and an animal;