In a landmark ruling, the Shanghai High Court has declared that Bitcoin is a virtual asset with economic value protected by Chinese law. This decision could have far-reaching implications for the future of Bitcoin and other digital currencies in China.
The decision about how bitcoin is recognized as property by the Chinese government has caused a lot of confusion and concern among investors around the world.
The court’s official WeChat account posted a notice last week stating:
“In the actual trial practice, the People’s Court has formed a unified opinion on the legal position of bitcoin, and identified it as a virtual property.”
In the actual trial practice, the People’s Court has formed a unified opinion on the legal position of bitcoin, and identified it as a virtual property.
While some countries like Russia (and Ukraine) have already legalized cryptocurrency trading, other countries are still debating whether or not they should follow suit, with many detractors pointing to El Salvador’s issues with bitcoin adoption.
The Bitcoin Case
The “Bitcoin Case” as it is known in China is a legal battle that has been going on for two years and continues to unfold. The plaintiff, Mr. Cheng Mou from Shanghai filed a lawsuit against defendant named Mr. Shi, demanding they return one bitcoin (BTC) which was given as compensation after an accident happened at work resulting in injury sustained by him during his recovery period; however the defendant refused payment so their dispute went all the way up through local courts before settling last year when they entered meditation.
Liu Yang a Beijing-based lawyer from the high-profile Deheng Law Firm says that this ruling will have significant implications for civil disputes involving bitcoin in the Shanghai area, as well as other tech-heavy cities such as Shenzhen.
I write about blockchain, crypto, NFTs and other disruptive technologies and innovations.