Shanghai High Court officially recognizes Bitcoin as having economic value and protected by local law

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2022-05-12 20:05:31

Cryptocurrency scene in Shanghai – China officially “turns the page”. The local High People’s Court has just ruled that Bitcoin has economic value and is officially a digital asset protected by Shanghai law.

Shanghai High Court officially recognizes Bitcoin as having economic value and protected by local law

In a notice published by the court on the WeChat platform, they roughly recognized Bitcoin as having an economic value, that they should absolutely be treated equally as other assets and protected by law.

The ruling states:

“The People’s Court has agreed on the legal position of Bitcoin, and determined it to be a “virtual reality” property Bitcoin has economic value in terms of being an asset, therefore will have to follow the principles set forth by the law.”

The verdict was made amid the astonishment of the community. The Chinese government from mid-2021 until now has continuously taken many drastic actions to “purge” cryptocurrencies. China has always viewed cryptocurrencies as a “terrible” threat to the country’s financial health.

Notably, the High People’s Court of China is the highest functional local court in the provinces. However, it remains unclear whether other high-level courts will share the same view and similarly “kill” Bitcoin.

Commenting on the ruling, Liu Yang, a lawyer in Beijing, said the court’s directive will serve as an important reference point for Bitcoin-related civil disputes in the Shanghai area.

After being legally released, many are concerned about how crypto investors and the government will react to this ruling. This is still a big question mark.

The above ruling stems from a case in October 2020, in which Mr. Cheng Mou filed an application with the People’s Court of Shanghai Baoshan District, asking Shi Moumou to return 1 Bitcoin to him. However, the defendant did not return the Bitcoins as required by the court within ten days. After that, Cheng decided to seek settlement from the Shanghai court system.

China has long been known for its anti-crypto stance. The demand to regulate Bitcoin mining and trading activities has caused the market to begin to plunge for the first time in 2021. The culmination of the “comprehensive general election ban” in September, “the last drop of water” led to a big correction, the market was in the red. Many platforms and miners fled to friendlier jurisdictions. At the time, China had the highest number of Bitcoin miners in the world.

The government has always imposed that cryptocurrencies disrupt the economic order and can spread personal risks to the wider society. Since then, the government has continuously issued regulations on cryptocurrencies to close any loopholes. One of the recent regulations is to ban users from publishing short cryptocurrency-related videos on social networks.

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