Shanghai High Court Announces Bitcoin Virtual Assets with Economic Value Protected by Chinese Law – Regulated Bitcoin News

The Shanghai High People’s Court declared bitcoin a virtual asset protected by Chinese law. The court noted that cryptocurrencies have economic value.

Bitcoin is legally protected property in China

Despite China’s ban on cryptocurrency trading, the Shanghai High People’s Court has declared that bitcoin qualifies as a virtual asset protected by Chinese law, Sina reported Friday.

Last week, the court’s official WeChat announcement stated:

In the actual trial practice, the people’s court has formed a unified opinion on the legal status of Bitcoin and identified it as virtual property.

The court further explained that bitcoin “has certain economic value, conforms to the attributes of property, and is protected by the legal rules of property rights.”

The announcement marks the first time a Chinese high court has ruled on a bitcoin case.

Bitcoin case

The court’s statement refers to the case in which Mr. Cheng filed a lawsuit with the Shanghai Baoshan District People’s Court on October 10, 2020, requesting Mr. Shi to return 1 bitcoin.

After the trial, the court ruled on February 23, 2021 that Shi must repay Cheng. bitcoin within 10 days of the judgment. However, Shi refused to pay, prompting Cheng to seek further compensation from the local court. Baoshan Court then arranged for both parties to mediate.

Liu Yang, a lawyer from Beijing Deheng Law Firm, told local media that the statement of the Supreme Court is of great reference significance as a reference ruling for civil disputes involving bitcoin in Shanghai.

What do you think of Bitcoin being declared a legally protected virtual asset by the High Court despite China’s ban on cryptocurrencies? Let us know in the comments section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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