Bitcoin is now property protected by Chinese law

Key facts:
  • A legal dispute forced the court to review and rule on the cryptocurrency.

  • The court ruling would force the government to review the ban on cryptocurrencies.

A Chinese High Court has recognized bitcoin as property protected by law, putting a new spin on the legal aspects related to cryptocurrencies, several months after the Central Bank declared all activities related to crypto assets illegal.

“In the actual practice of the trial, the People’s Court has formed a unified opinion on the legal position of bitcoin and identified it as a virtual property,” as reported by Chinese media.

The court was forced to release a statement around bitcoin due to a legal dispute of two Chinese citizens about paying a debt in BTC.

Although the case happened in 2020, since neither person was close to reaching a settlement, the lawyers took the case to court.

Subsequently, “in the analysis of the case, the popular court formulated a unified opinion on the legal position of bitcoin and determined that it was virtual property, “adds the note.

Lawyer Liu Yang told the media that the court statement has strong referential significance for civil disputes involving bitcoin in Shanghai. In addition, he said that this is the first case related to cryptocurrencies that is tried by a High Court, so far.

The High Court ruling regarding bitcoin would force government authorities to review their ban with respect to all activity related to cryptocurrencies. This is because people’s courts are directly controlled by the central government in China.

However, in the cited text it is mentioned that the Court found difficulties in determining the legal aspect of a cryptocurrency such as bitcoin. He adds that, “under the discussion of multiple theories, it is impossible to legally identify bitcoin, so the answer is sought from the aspect of judicial practice.”

If there is a change of position by the government, it would not be the only time that this happens in China with respect to bitcoin. As reported by CriptoNoticias On at least 7 occasions, the country has vetoed the use of crypto assets in its territory.

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