A Chinese Court Declares Crypto as Legal
- China has been implementing restrictions on the crypto industry since 2013.
- The Chinese government banned crypto trading and mining activities in 2021.
- The latest ruling of the Chinese court provides a glimmer of hope to crypto enthusiasts in China.
- The court also provided insight on how to deal with crimes connected to the crypto industry.
China’s complex relationship with cryptocurrencies is taking a new twist as the nation’s courts are quietly reshaping the landscape. China imposed a ban on cryptocurrencies in 2021; however, a Chinese court recently reaffirmed cryptocurrencies as legal property.
As per local reports, the People’s Court of China stated that digital assets like cryptocurrencies should be considered legal properties that are duly protected by Chinese law.
The People’s Court is not the first Chinese court to uphold a different view from the government. Earlier in 2018, a Chinese court in Hangzhou upheld Bitcoin’s status as virtual property.
The court at that time confirmed that it was legitimate to own Bitcoin in China, and it also assured crypto owners that they would be safeguarded by the nation’s legal system in cases of dispute.
Interestingly, the Chinese government stepped up its efforts to ban all crypto activities in 2021. By the end of September 2021, the government had completely outlawed all cryptocurrency transactions.
It is important to state that China has adopted a slow but steady approach to outlawing cryptocurrencies. The restriction was implemented gradually, starting in 2013, when the use of Bitcoin increased to the point where many merchants started to accept it. At the time, the biggest search engine in China, Baidu, declared that it would accept Bitcoin payments.
In 2013, the Chinese government implemented restrictions preventing banks from processing Bitcoin transactions. Furthermore, the Chinese government banned initial coin offerings (ICOs) in 2017 and halted Bitcoin mining operations in 2019. China later placed a total ban on crypto mining and trading in 2021.
It is still uncertain how the latest court rulings will affect the future of cryptocurrencies in China. However, the courts’ decisions give hope to businesses and individuals involved in digital assets in China.
I have covered some exciting stories in my career as a journalist and find blockchain-related stories very intriguing. I believe Web3 will change the world and want everyone to be a part of it.
