Chinese Court declares that BTC has economic worth
A Shanghai high court declared that Bitcoin is a virtual asset, has economic value, and is protected by Chinese law
By Shashank Bhardwaj
The Shanghai High People’s Court gave a ruling that Bitcoin comes in the category of a virtual asset and, despite the cryptocurrency trading ban, comes under the protection of the Chinese law. The court also stated in its ruling that Bitcoin possessed economic worth.
A High People’s Court is the highest court in China, preceded by the People’s Court and the Intermediate People’s Court. The Court’s official WeChat channel posted a notice last week, “In the actual trial practice, the People’s Court has formed a unified opinion on the legal position of bitcoin, and identified it as virtual property.”
The message further reiterated Bitcoin’s status as an asset which "has a certain economic value and conforms to the property’s attributes, the legal rules of property rights are applied for protection." The development marks the first time a higher court has issued a favourable ruling in a bitcoin case in China.
A lawyer from Beijing’s Dehng Law firm, Liu Yang, said that the high court’s ruling would be strongly significant. It will serve as a reference ruling to solve bitcoin-related civil disputes in the Shanghai jurisdiction.
The Court ruling concerns a case with Cheng Mou. Mou had filed a lawsuit with the Shanghai Baoshan District People’s Court on October 10, 2020. He had demanded that Shi Moumou return his bitcoin.
The trial was concluded on February 23, 2021, and the court gave its verdict that Chend must get his BTC back from Shi within 10 days of the judgement. Shi refused to pay the bitcoin, and Cheng then went to the local court to seek redressal. Subsequently, intermediation between the two parties was arranged by the Baoshan court.
Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash