We’ve known for a while now that China isn’t a big fan of cryptocurrencies and that has taken several measures to kill of the leading cryptocurrency, Bitcoin. Some of these measures include a blanket ban on all digital assets, ICOs and shuttering crypto exchanges all in the name of banning virtual currency. But according to the latest order by Hangzhou Internet Court suggests that owning Bitcoin is not actually breaking the law as China has given the leading cryptocurrency the status of a ‘virtual property’.
WOW 😲 BITCOIN IS LEGALLY PROTECTED IN CHINA— Dovey Wan 🗝 🦖 (@DoveyWan) July 18, 2019
Today the first property dispute case on Bitcoin finalized trial in a local Chinese court. The court confirmed the "virtual property" attribute of Bitcoin, recognized it as a virtual property with valuehttps://t.co/W8ZeqLCYge
The Hangzhou Internet Court was undergoing a trial in a Bitcoin property infringement dispute. According to CCN, it came to the conclusion that Bitcoin is to be treated as virtual currency because it carries value, is scarce and can be used as a means of transferring.
"Indeed, Bitcoin is virtual property, but it's not fiat money.”
The court’s ruling and the PBOC’s clarification makes it clear that owning Bitcoin in the nation is legal although this isn’t the first time the nation has taken such a stand.
Shenzhen-based Court ofInternational Arbitration had ruled in October last year that the leading cryptocurrency is protected under Chinese law thanks to its economic value and gave it the status o being property.
Twitter user, cnLedger tweeted the following last year:
“Chinese court confirms Bitcoin protected by law. Shenzhen Court of International Arbitration ruled a case involving cryptos. Inside the verdict: CN law does not forbid owning & transferring bitcoin, which should be protected by law bc its property nature and economic value.”
Now, I wouldn’t expect the Chinese government to see crypto exchanges with a welcome party as authorities have been quite hostile towards Bitcoin for some reason, most likely in regards to a Chinese-specific cryptocurrency.