The Shanghai High People’s Court declared that Bitcoin has a “particular economic worth” and is a digital asset safeguarded by Chinese law, adding to the country’s volatile cryptocurrency scene.
According to Bitcoin.com, the court stated that BTC really does have some economic worth and possesses the appropriate property features in a notification posted on the WeChat messaging app. Given that China has prohibited cryptocurrencies like Bitcoin, alleging a threat to the country’s financial sector stability, the decision is significant.
Bitcoin legal status
According to the ruling, In actual trial practice, the People’s Court reached a consensus on BTC’s legal status, classifying it as virtual property. In addition, the judgment states that Bitcoin has a specific economic value, and the rule of law of property rights is applicable for protection based on the features of property.
The court’s verdict is the first time the country’s legal system has ruled on BTC. The high people’s court of China is notable for being the highest local court within provinces. It’s however uncertain whether other higher courts will take a similar stance on Bitcoin.
The court’s decree, according to Liu Yang, a Beijing lawyer, will serve as a keyframe of reference for Bitcoin-related civil cases in the Shanghai area. Given the case decision that BTC should indeed be given legal protection, how crypto players and the government respond to the mandate will be closely watched.
The decision stems from a pending case in October 2020 by Cheng Mou with the Shanghai Baoshan District People’s Court, in which he demanded that one Shi Moumou restore his single BTC
Meanwhile, the defendant failed to submit the BTC within the ten-day period specified by the court in a February 2021 order. Cheng decided to seek a remedy through the Shanghai local court system, where the Baoshan Court mediated between the involved individuals.
Despite China’s hard hostility to cryptocurrencies, the influence of last year’s decision to restrict cryptocurrency trading and mining on the broader market was enormous. Consequently, Miners shifted to more friendly regions as a result of the directive, causing a large crypto market fall. China, interestingly, had the biggest number of BTC miners at the time across the world.
The government says that cryptocurrencies disturb economic order and can limit individual risks from spreading to the rest of society.
Ever since the government has issued crypto rules in an attempt to close any gaps. One of the most recent restrictions outlawed the sharing of crypto-related short videos on the internet. The China Netcasting Services Association (CNSA), according to Finbold, has revised its policies to make distributing films promoting digital assets illegally.