The Shanghai High People’s Court has declared bitcoin to be a virtual asset protected by Chinese law. According to the court, cryptocurrency is an economic asset.
China Law Protects Bitcoin Property
The Shanghai High People’s Court has declared that bitcoin qualifies as a virtual asset protected by Chinese law despite the ban on cryptocurrency trading in China, Sina reported Friday.
The court’s official Wechat channel 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.
The court further explained that bitcoin “has a certain economic value and conforms to the property’s attributes, the legal rules of property rights are applied for protection.”
It is the first time that a China higher court has issued a decision in a bitcoin case.
Bitcoin Case
The court’s statement refers to a case involving Mr. Cheng Mou who filed a lawsuit with the Shanghai Baoshan District People’s Court on Oct. 10, 2020, demanding that Mr. Shi Moumou return his one bitcoin.
On February 23, 2021 the court ordered that Shi repay Cheng for his BTC. This was within 10 days. Cheng pursued further legal recourse from local courts as Shi refused the payment. After the incident, intermediation was arranged by the Baoshan Court.
Liu Yang, a lawyer from Beijing’s Deheng Law Firm, told local media that the high court’s statement will have strong significance as a reference ruling for civil disputes involving bitcoin in the Shanghai area.
How do you feel about bitcoin being declared a protected virtual asset by the law by a high court despite China’s ban? Comment below.
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