April 19, 2024
China court report Report Affirms the Legal Standing of Virtual Assets
Latest Cryptocurrency News

China’s Evolving Stance: Court Report Confirms Legal Status of Virtual Assets

According to a report titled “Identification of the Property Attributes of Virtual Currency and Disposal of Property Involved in the Case,” virtual assets are recognized to possess economic characteristics and can thus be categorized as property, as per a local news outlet. Despite China’s overarching ban on foreign digital assets, the report contends that virtual assets owned by individuals should be regarded as legal and entitled to protection under the current policy framework.

Furthermore, the report offers recommendations for addressing crimes involving virtual assets. It highlights that due to the inability to confiscate the money and property in these cases, a unified approach combining criminal and civil law is advisable. Such cases should be handled separately to ensure a fair balance between safeguarding personal property rights and upholding social and public interests.

The People’s Courts of the People’s Republic of China exercise their judicial authority independently, free from any interference by administrative or public organizations. These courts handle a wide range of cases, including criminal, civil, administrative, and economic disputes.

China previously instituted a comprehensive ban on all cryptocurrency-related activities and prohibited foreign cryptocurrency exchanges from serving mainland customers. Nevertheless, Chinese courts have exhibited a different perspective on Bitcoin and other digital assets over time. This divergence became evident in September 2022, when a lawyer proposed that cryptocurrency holders in China are legally protected in instances of theft, misappropriation, or breach of a loan agreement, despite the crypto ban. Subsequently, in May 2022, a Shanghai court affirmed that Bitcoin qualifies as virtual property and, therefore, falls under property rights.

China’s historically stringent stance against Bitcoin and other cryptocurrencies has evolved somewhat in recent years. This transformation is exemplified by the resurgence of China’s Bitcoin mining activities, which initially dropped to zero following the blanket ban but rebounded to claim the second position within a year.

A People’s Court in China has released a report addressing the legality of virtual assets, delving into the criminal law aspects of these digital assets. In the report, the court underscores that virtual assets remain legal property and are protected by the law within the existing policy framework.

Image by freepik

Related posts

Forbes Launches Everlasting Metaverse Experience, Boasting ‘Luxurious Pool’ and ‘Elegant Bar’

Cheryl  Lee

Former Binance CEO CZ Teases New Project Amidst Legal Turmoil

Harper Hall

Hong Kong SFC Cracks Down on Fake Crypto Exchanges

Bran Lopez

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More