The Shanghai Higher People’s Court has declared Bitcoin a virtual asset protected by Chinese law. The court states that cryptocurrencies have economic value.
Bitcoin’s property is protected by Chinese law
The Shanghai Higher People’s Court has declared Bitcoin eligible as a virtual asset protected by Chinese law, despite a ban on cryptocurrency trading in China, Sina reported on Friday.
The court’s official Wechat channel posted a notice last week:
In the actual trial, the People’s Court formed a unified opinion on Bitcoin’s legal position and identified it as a virtual property.
The court further explained that Bitcoin “has a certain economic value, is compliant with the attributes of property, and the legal rules of property rights apply for protection.”
This statement is the first time that the Chinese High Court has ruled on the Bitcoin case.
The court statement relates to a case in which Cheng Mou, who filed a lawsuit in the Shanghai Baoshan District People’s Court on October 10, 2020, requested Shi Moumou to return 1 Bitcoin.
After the trial, the court ruled on February 23, 2021 that Shi had to repay Cheng. BTC Within 10 days of the ruling. However, Shi refused to pay and urged Cheng to seek further relief from the district court system. The Takarayama Court then arranged for mediation between the parties.
Liu Yang, a lawyer at Beijing’s Deheng law firm, told local media that the High Court statement was very important as a reference decision for civil disputes, including Bitcoin, in the Shanghai region.
What do you think of the High Court, which declares Bitcoin as a legally protected virtual asset, despite the ban on cryptocurrencies in China? Let us know in the comments section below.
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