Shanghai High Court Declares Bitcoin Virtual Asset With Economic Value Protected by Chinese Law

The Shanghai High People’s Court has declared bitcoin to be a digital asset protected by Chinese legislation. The court docket notes that the cryptocurrency has financial worth.

Bitcoin Is Property Protected by Law in China

The Shanghai High People’s Court has declared that bitcoin qualifies as a digital asset protected by Chinese legislation regardless of the ban on cryptocurrency buying and selling in China, Sina reported Friday.

The court docket’s official Wechat channel posted a discover final week stating:

In the precise trial follow, the People’s Court has fashioned a unified opinion on the authorized place of bitcoin, and recognized it as a digital property.

The court docket additional defined that bitcoin “has a sure financial worth and conforms to the property’s attributes, the authorized guidelines of property rights are utilized for defense.”

The assertion marks the primary time {that a} larger court docket in China has issued a ruling regarding a bitcoin case.

The Bitcoin Case

The court docket’s assertion refers to a case involving Mr. Cheng Mou who filed a lawsuit with the Shanghai Baoshan District People’s Court on Oct. 10, 2020, demanding that Mr. Shi Moumou return his one bitcoin.

After the trial, the court docket dominated on Feb. 23, 2021, that Shi should repay Cheng his BTC inside 10 days of the judgment. However, Shi refused to make the cost, prompting Cheng to hunt additional redress from the native court docket system. The Baoshan court docket subsequently organized for intermediation between the 2 events.

Liu Yang, a lawyer from Beijing’s Deheng Law Firm, advised native media that the excessive court docket’s assertion could have robust significance as a reference ruling for civil disputes involving bitcoin within the Shanghai space.

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