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Bitcoin legally recognised in Shanghai, paves way for crypto expansion in China
Chinese courts allow Bitcoin holders to assert ownership rights and seek legal remedies for crypto related disputes despite crypto ban 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.
Several other Chinese courts have recognised Bitcoin and other digital assets as legal properties protected by law. In May 2022, a Shanghai court recognised Bitcoin as a virtual property. In September 2022, a lawyer argued that Chinese law could protect crypto holders in theft or breach cases despite the national crypto ban.
The Chinese Government has taken no official stand with respect to lifting the ban on conducting crypto activities in the country. The recognition of Bitcoin by some Chinese Courts as a unique digital currency gives hope that China could lift the ban on crypto in the future.
The global crypto community has welcomed this news, as it legitimises Bitcoin and sets a precedent for future legal recognition of cryptos in other jurisdictions as well. Cryptocurrencies are slowly gaining acceptance in mainstream finance, reinforcing their legitimacy.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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