BTC is now a legal commodity in China

19 Jul, 2019
by Manshi Soneji Mamtora
News
BTC is now a legal commodity in China

Bitcoin provided recognition in China as 'virtual property'. This does not mean trading activities become easier, rather mere protection against ownership of the asset.

The Hangzhou Internet Court upheld Bitcoin status as 'virtual property'. The ruling reaffirms that Bitcoin is now legal to own in China and indicates that holders would be protected from disputes regarding possession. 

As per the translated Beijing News report, ''Bitcoin holds the attributes of property. It’s valuable, scarce, and disposable. Therefore, we should recognize it as virtual property according to the 'General Civil Law.' Virtual property is legally protected by the laws of the People’s Republic of China.'' The first case of Bitcoin property infringement was resolved in the Hangzhou Digital Court.

However, this is not the first time that Bitcoin has been declared legal asset in China by judicial authorities. In 2018, the Shenzhen Arbitration Commission declared “the asset should be protected in accordance with law” and is legal to own and transfer. 

The Hangzhou Court added further credence to Bitcoin stating that the cryptocurrency meets the virtual property requirements because it has value, is scarce and disposable. This does not reveal the traders as the door to trading still needs a hard push with ICOs banned in the country since 2017. 

The ruling only gives certain rights in regard to Bitcoin as a commodity on a larger scale.

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Read more about: China Bitcoin (BTC)

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