Shanghai High Court Declares Bitcoin Virtual Asset With Economic Value Protected by Chinese Law – Despite China’s ban on cryptocurrency trading, the Shanghai High People’s Court has ruled that bitcoin qualifies as a virtual asset protected by Chinese law, according to Sina.
Last week, the court’s official Wechat channel posted a notice that stated:
“The People’s Court has reached a unanimous opinion on the legal standing of bitcoin and designated it as a virtual property in actual trial practice.”
The court went on to say that because bitcoin “has a specific economic worth and adheres to the property’s qualities, property rights legal norms are applied for protection.”
The declaration is the first time a Chinese higher court has issued a decision in a bitcoin case.
Mr. Cheng Mou, who filed the lawsuit with the Shanghai Baoshan District People’s Court on Oct. 10, 2020, seeking that Mr. Shi Moumou restore his one bitcoin, is the subject of the court’s announcement.
Following the trial, on Feb. 23, 2021, the court ruled that Shi must reimburse Cheng his BTC within 10 days of the ruling. Shi, on the other hand, refused to pay, causing Cheng to seek further remedy through the local judicial system. Following that, the Baoshan court called for mediation between the two parties.
Shanghai High Court Declares Bitcoin Virtual Asset With Economic Value Protected by Chinese Law – According to Liu Yang, a lawyer from Beijing’s Deheng Law Firm, the high court’s declaration would serve as a reference judgement for civil issues concerning bitcoin in the Shanghai area.