Bitcoin is now property protected by Chinese law. Indeed, a new ruling by the Shanghai High People’s Court in China has taken a new turn. By declaring Bitcoin as protected virtual property.
As reported by Chinese media: “In the actual practice of the trial, the People’s Court has formed a unified opinion on the legal position of Bitcoin. And identified it as a virtual property».
In this regard, Liu Yang, a lawyer from Beijing, noted that the court’s ruling will serve as a critical reference level for Bitcoin-related civil litigation in the Shanghai venue. In addition, he said that this is the first case related to cryptocurrencies that is dealt with by a Higher Court, so far.
However, the Chinese People’s High Court is the highest practical community court in the provinces. However, it is not clear whether other higher-ranking courts will share exactly the same view.
Shanghai court says Bitcoin is a virtual asset
Specifically, the High Court has just ruled that Bitcoin has economic value. And it is officially a digital asset protected by Shanghai law.
In fact, in a notice published by the Court, they recognized Bitcoin as a financial value. Which should definitely be managed on a par with other assets and protected by law.
In any case, the People’s Court agreed on the legal position of Bitcoin, and ruled that it is a virtual reality property. «Bitcoin has economic value in terms of assets, so you will have to follow the principles dictated by law».
Indeed, the ruling could be significant for civil disputes over cryptocurrencies in China.
Why this failure?
To better understand, 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 October 10, 2020, demanding that Mr. Shi Moumou return his one and only Bitcoin.
Following the trial, the court ruled on February 23, 2021 that Shi must return Cheng his BTC within 10 days from the judgment. However, Shi refused to make the payment, prompting Cheng to seek further redress from the local judicial system. Subsequently, the Baoshan court arranged for intermediation between the two parties. Holding the mediation in May 2021.
What do you think about the High Court declaring Bitcoin as a virtual asset protected by law despite the ban on cryptocurrencies in China? Let me know in the comment box.
I end with this quote from John McAfee: “You can’t stop things like Bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust».
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