The Chinese government banned crypto in 2021. However, the Chinese population has been finding ways to keep involved in crypto.
Now a Chinese court declared digital assets a legal property protected by law. So, what’s going on in China with digital assets?
A Local Chinese Court Declares Virtual Assets as Legal Properties Protected by Law
This is not the first time that local Chinese courts hit the news headlights. Last year, a Shanghai High People’s Court made headlines. It declared Bitcoin to be a legal virtual property. Only a few days ago, a local court in the southeastern Fujian province took the spotlight.
This local court argued that you can classify digital assets as property. That’s despite a blanket ban on crypto by the Chinese government. On the other hand, in Hong Kong, you’re now allowed to trade in crypto. That’s with a nod from the Chinese government.
NEW: 🇨🇳 China declaring digital assets a legal property protected by law is an "earthquake that could hit the #Bitcoin price," per Forbes 👀 pic.twitter.com/Y8j1QtcIkt
— Bitcoin News (@BitcoinNewsCom) September 2, 2023
So, this indicates that crypto causes a lot of debate in China. For example, Chinese crypto users traded for $90 billion in May 2023. That’s according to the Wall Street Journal. This accounts for 20% of the worldwide volume. That’s some serious volume, considering the Chinese government banned digital assets.
So, back to the People’s Courts in China. They are judicial bodies that have independent judicial power. Administrative or public organizations can’t interfere with these courts. That’s written in the Chinese constitution.
This Fijian court wrote a report. It provides suggestions on how to deal with crimes involving digital assets. Courts should treat such cases separately. This allows for personal property rights and social and public interests to receive fair rulings.
4️⃣ Key Points from the Report:
👉 Virtual assets have economic attributes and can be classified as property.
👉 Despite the ban on foreign digital assets, assets held by individuals in China should be protected.
👉 For crimes involving virtual assets, a balanced protection of… pic.twitter.com/KY4AOhNIGD
— Keyur Rohit (@CryptoKingKeyur) September 2, 2023
Conclusion
There’s a blanket ban on digital assets by the Chinese government. However, local courts seem to have different rulings. A Local People’s Court argued that digital assets are a legal property protected by law. The crypto controversy continues in China.
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