In practical trial, Chinese court has formed its own unified opinion on Bitcoin

china again

Last updated May 13, 2022

Recently, China’s controversial cryptocurrency landscape has taken a new turn after a Shanghai Supreme Court ruled that Bitcoin as an asset has “specific economic value” and is a virtual asset protected by the laws of the country.

In a court statement released via messaging platform WeChat, Bitcoin is believed to have some economic value and related asset characteristics.

The ruling comes in the wake of China banning cryptocurrencies such as bitcoin while citing threats to the country’s economic stability.

“In the practice of the process, the People’s Court formed a unanimous verdict on the legal status of bitcoin and thus further recognized it as virtual property.”

The judge further said that Bitcoin has a specific financial value and that, depending on the characteristics of the property, the provisions of the Property Rights Protection Act also apply to it.

The court ruling is the first ruling in the country’s legal system involving Bitcoin. Notably, the Supreme Court of China is the highest local court in the province. However, it is not clear whether other high courts will take a similar stance on Bitcoin.

Liu Yang, a Beijing lawyer while commenting on the verdict, said the court’s ruling would serve as a key indicator of civil disputes over bitcoin in the Shanghai region.

As we consider the ruling in the case stating that Bitcoin should have legal protections, it will now be interesting to see how crypto players and the government react and act on the new order.

The verdict in the October 2020 case in which a man identified as Cheng Mau filed a lawsuit in the Shanghai Baoshan District People’s Court to demand the return of his bitcoin.

While the defendant failed to return the bitcoin within the stipulated ten days, as stated by the court in the February 2021 verdict.

As of now, Cheng has decided to go ahead and seek help from the local court in Shanghai, where the Baoshan court conducted arbitration between the two sides.

Despite China’s longstanding opposition to cryptocurrencies, last year’s proposal to ban crypto trading and mining was seen as important in the wake of the market crash.

Although this proposal led to a major cryptocurrency correction, with miners moving to several other friendly jurisdictions. China, in particular, had the highest number of bitcoin miners worldwide at the time.

The government continues to claim that cryptocurrencies are disrupting the economy and preventing personal risks from spreading to the wider community.

After that, the government continuously issued rules to close any loopholes in the law. The recent one is the ban on short videos related to crypto that are shared online. The China Netcasting Services Association (CNSA) has confirmed the sharing of videos promoting digital assets and updated the conditions.

Also Read: Binance CEO Views UST As An Experimental Failure

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