If proofs of payment are provided but in cryptocurrency, do you think the court will consider it even though transactions are tagged illegal with it? or will the case be thrown out and the owner of the property with the false claim of not receiving the money be allowed to go freely?
as long as you're operating in a country where Bitcoin transaction are illegal, making payment through such medium should be entirely based on trust or through a reputable exchange and even at that, you have to have it at the back of your mind that should things go north, you don't have a choice rather than letting it go because you don't have a case in a court of law.
If you've made a payment to someone that refuse to acknowledge that he received the payment, if you're taking him to court, it's purely based on the fact that you're ready to drag the two of you down because regardless of how he says it, he's going to definitely face same penalty with you cause for agreeing to accept a payment in Bitcoin in a country where Bitcoin is illegal is a total crime that will involve the punishment of both the sender and the receiver.