Bitcoin Is a Digital Asset Says Intermediate People’s Court in China
On May 6, the First Intermediate People's Court in Shanghai indicated that Bitcoin is a digital asset and should be protected by the law. All Bitcoin obtained through illegal means should be returned or compensated at a discount. Bitcoin involved in the lawsuit was known as 18.88 BTC.
Judge Liu Kang, said, "The People's Bank of China, etc., has published documents such as" Notices on Bitcoin Risk "(2013) and" Notices to Prevent Loan Risk of Token Issuance "(2017). It has been distributed and does not deny the property of Bitcoin as a commodity, and Chinese laws and administrative regulations did not prohibit the holding of Bitcoin. ” 'Notices on Bitcoin Risk' contains information that Bitcoin is a specific virtual product in nature. Therefore, Bitcoin has the properties of virtual property and virtual product so must be protected by the law. However, the documents deny the legal status to recognize this 'virtual currency' as currency. It is said that 'virtual currency' such as Bitcoin should not be distributed in the market as currency.
The Shanghai court ruling has renewed the legal and policy implications for cryptocurrency. Firstly, it is legal for individuals to hold Bitcoin, and the properties of Bitcoin products are legally protected. Secondly, the CMC platform and other trading platforms are not approved by the Chinese law. Lastly, if you purchase cryptocurrency in currency and exchange it with fiat currency, it may not be legally recognized.