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
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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.
