Ruling by Shanghai Songjiang People’s Court on Cryptocurrencies in China
A recent ruling by the Shanghai Songjiang People’s Court has clarified the legal status of owning cryptocurrencies in China. The judgment, issued on Nov. 18, established that digital assets have “property attributes” under Chinese law. However, there are strict limitations on their use, defining them as personal ownership and commodities rather than legal tender or investment tools.
Key Points from the Court Ruling:
- Ownership of cryptocurrencies is not illegal in China.
- Digital assets are recognized to have “property attributes” under Chinese law.
- Use of cryptocurrencies is limited to personal ownership and as commodities, not legal tender or investment tools.
- Businesses face restrictions on engaging in crypto investments, trading, or token issuance.
Reaction from the Crypto Community
The crypto community has welcomed this ruling as a potential shift in China’s stance towards Bitcoin and other cryptocurrencies. Bitcoin advocate Max Keiser sees it as a significant recognition of Bitcoin’s influence in China. Eliézer Ndinga, VP at 21Shares, clarified that while individuals could always hold cryptocurrencies in China, commercial crypto-related activities have been banned.
Recent Developments and Speculation:
- Nano Labs, a China-based crypto mining chip company, accepting Bitcoin payments.
- Speculation about a gradual shift in China’s cryptocurrency policies.
- Bitcoin’s value continues to rise, reaching above $97,000 as of press time.
