Bitcoin legally recognised in Shanghai, paves way for crypto expansion in China

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Shanghai has recognised Bitcoin as a unique and non-replicable digital asset. They have acknowledged its scarcity and inherent value. This recognition comes despite China's official stance against crypto. The development was even shared by Tron Network founder Justin Sun on his social media.

On September 25, the Chinese court published a report outlining the advancements in internet technology. In the report, they emphasised that with the development of internet technology, digital currencies, particularly Bitcoin, stand out for being unique and non-replicable from other digital assets.

The report also highlights Bitcoin's distinct characteristics, which include its scarcity and widespread acceptance. It underscores that Bitcoin exhibits essential currency traits like scalability, ease of circulation, storage, and transaction usability. Despite being decentralised and lacking central authority oversight, Bitcoin retains key currency functions, serving as a medium of exchange, store of value, and widely accepted means of payment globally.

The report highlights that Bitcoin can be acquired through mining, inheritance, or buying and selling. This legal perspective strengthens the legitimacy of Bitcoin and other digital currencies within China. It indicates that courts may be more open to recognising crypto as personal property.

In 2021, China imposed a blanket ban on all crypto activities, including Bitcoin mining, and barred foreign exchanges from serving its mainland customers. However, this latest recognition from one of the key courts in China provides a new perspective for the crypto realm in China.