Owning and P2P trading Bitcoin is legal in China, top Chinese lawyer claims

25 May, 2019 | Updated: 25 May, 2019
by Fifi Arisandi
Opinion
Owning and P2P trading Bitcoin is legal in China, top Chinese lawyer claims

A top law representative and council member of the People’s Bank of China recently spoke publicly that it is actually legal to own Bitcoin and do P2P trading in China. 

The Chinese government ban to Bitcoin as well as the moves they take to combat its use has been widely known. That said, the real-life implementations of the ban have been told differently by many people.

Recently, a top law representative at the People’s Bank of China (PBOC) came out and told his “version” of the story.

Sa Xiao, a Council Member at the PBOC’s Law Research Association said in public that it is “legal to own Bitcoin in China”.

His statement was reported by local media, the Beijing News, which then tweeted by CnLedger.

Xiao said that “occasional exchange of BTC” between individuals is completely legal as the current legal framework protects people’s rights to own virtual properties, including Bitcoin.

The legal framework also doesn’t forbid peer-to-peer trading as it “satisfies regular conditions of ownership”, as reported by Beincrypto.

Running Bitcoin trading as a business, however, is a completely different story. He explained that if a BTC trading business causes significant customer losses with “serious consequences", the operator(s) would then face the criminal law.

As for crypto exchanges and mining, Xiao clearly stated that the Chinese government is still strongly against them.

Basically, what Xiao is saying in a one-sentenced summary is, "In China, owning Bitcoin and using it for P2P trading “occasionally” is completely legal, while crypto exchanges and mining are illegal."

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

Chepicap is now LIVE in Blockfolio! This is how you receive our latest news in your portfolio tracker!  

Poll

Does the "new explanation" surprises you?

(7 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage