Bitcoin has been declared a virtual asset protected under Chinese law, the same law which previously announced that all crypto transactions are illegal in China.
A new ruling from the Shanghai High People’s Court said that not only is Bitcoin protected under Chinese law, but also that it has economic value.
In an official WeChat channel, the court has said, “In the actual trial practice, the People’s Court has formed a unified opinion on the legal position of bitcoin, and identified it as a virtual property.”
The ruling comes from an ongoing case in the High People’s Court. Cheng Mou filed a case against Shi Moumou to return his one Bitcoin. The case was resolved by the parties agreeing that the defendant would provide compensation at a discount from the value of the Bitcoin at the time of the loan.
The case was moved on to the High People’s Court because the defendant previously refused to accept the decision of Shanghai Baoshan District People’s Court, which ruled that the defendant must pay back the bitcoin within 10 days of the judgement.
China has been very critical of cryptocurrencies and NFTs. The country has however developed its own digital currency called Digital Yuan. Digital Yuan trials are being extended to a few selected hospitals in cities like Tianjin, Hangzhou, Guangzhou among others.
