Shanghai High Court Said Bitcoin Is an Asset Protected by Law

by in Cryptocurrency News

China Bitcoin

The Shanghai High People's Court has mentioned that Bitcoin is a digital asset protected by Chinese law, adding that the coin has economic value.

Related: China will rev the implementation of blockchain into government structures

According to local media, the declaration was made in connection with a court hearing. A person called Cheng Mou filed a lawsuit demanding that another person, Shi Moumou give back his one BTC. The process began at Shanghai People’s Court in Oct. 2020, and Moumou was directed to return the asset according to a February decision. As the defendant didn't agree with the decision, it went to the Shanghai High People’s Court.

The ruling is supposed to have great importance as it serves as an example for how virtual assets could be seen in Chinese law despite previously the government reiterated trading and mining crackdown of cryptocurrencies.

In September 2021, the People's Bank of China announced that business activities connected with virtual currencies are not legal. The institution warned traders against crypto trading, saying their holdings can be seriously endangered.