2023-09-26 19:10:11
© Reuters. Bitcoin gains legal recognition as digital currency in Shanghai
CriptoFácil – The No. 2 Intermediate People’s Court of Shanghai, China, gave (BTC) the status of a unique and non-replicable digital currency in an important legal recognition. Furthermore, the court recognized its scarcity and its inherent value.
In a report released on Monday (25), the court analyzed the development of Internet technologies and stated that digital currencies such as Bitcoin stand out as unique and non-replicable, differentiating themselves from other digital assets.
The document also points out some unique attributes of BTC such as its monetary characteristics of scalability, ease of circulation, storage and payment. Furthermore, it emphasizes that cryptocurrency has global use, despite its decentralized nature and the absence of a central authority.
Therefore, when disputes arise regarding the theft or ownership of Bitcoin, the article indicates that BTC can be considered personal property, acquired through purchase, mining or inheritance.
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Bitcoin and cryptocurrencies in China
In China, however, any activities with Bitcoin or another cryptocurrency have been strictly prohibited since 2021. This includes, for example, trading, mining and issuance. Despite this ban, legal arguments for defining BTC as personal property have gained traction in Chinese courts.
At the beginning of September, as reported by CriptoFácil, the Chinese court declared that holding and transferring cryptocurrencies in the country is a legal activity.
An analysis by a Chinese court stated that cryptocurrencies are considered legal property within the current legal framework. Therefore, they are protected by law.
This was yet another court decision in favor of cryptocurrencies in China. Previously, as a result of another specific case involving an individual who filed a lawsuit against a cryptocurrency exchange, the court had also declared that cryptoassets are legal properties in the country.
It is important to emphasize that these positions do not represent an official political change. The ban on cryptocurrency and Bitcoin trading remains firmly in place. However, recognizing BTC as property strengthens legal positions regarding property within existing restrictions.
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