The founder of Tron, Justin Sunhas pointed out a recent article by the Second Intermediate People’s Court of Shanghai, which appears to legitimize the flagship digital currency, bitcoinalthough bitcoin/china-ban-aftermath-why-the-crypto-downtrend-could-end-on-new-years-eve/” rel=”nofollow noopener” target=”_blank”>China’s anti-crypto stance.
What the Chinese court has to say
in a cheep shared on its X platform (formerly Twitter), Sun cited a portion of the article labeling btc/bitcoin-price-correction-26350/” rel=”nofollow noopener” target=”_blank”>bitcoin as “unique and not replicable”. On a closer look, the article discusses the legal attributes of bitcoin and how judicial decisions should be made on crimes related to them.
On the one hand, the author believes that, by mentioning how cryptocurrencies are used as an object of illegal financial activities Like illegal fundraising, the People’s Bank of China indirectly recognizes the financial nature of cryptocurrencies like bitcoin despite the current ban.
However, he stated that due to the regulator’s stance, the legal attributes of the digital currency are not clarified, making its judicial disposition difficult. He noted that despite attempts by some courts to ignore the “monetary” and “property” attributes of these digital currencies, they have failed miserably.
Regarding the monetary attribute, these courts, in their rulings, still identify the sale price of digital currencies. Meanwhile, when it comes to property attributes, these courts “face the dilemma of not being able to avoid the property value presented by digital currencies” when the case is ongoing.
It details the ownership attribute of digital currency and how it is difficult to avoid it. He labels bitcoin as “unique and non-replicable” and different from virtual currencies such as “Q coins.” Additionally, he alluded to the “relative scarcity” of the currency and how this fact is widely recognized. Because of this, it is no longer possible for the court to ignore the financial status of bitcoin.
The author acknowledges that bitcoin‘s “decentralized characteristics” and that it is not managed by a central authority (such as a central bank) precludes its dependence as a currency. However, bitcoin still possesses “important currency functions” such as terms of scale, means of circulation, means of storage, means of payment, and world currency (bitcoin is used all over the world).
Once again, the article points out the proprietary attributes of bitcoin, as it can be obtained through “labor production” mining or through inheritance. As such, despite not being a “legal currency” in China and having various descriptions, the property attributes “cannot be completely denied.”
What this means in the future
The court’s legal opinion gives more legitimacy to bitcoin and digital currencies, as the article states that these tokens undoubtedly have value, although the People’s Bank of China chooses not to acknowledge this fact.
Furthermore, the court would be more inclined to adopt arguments that cryptocurrencies can be classified as personal property, especially considering that it mentions that bitcoin, for example, can be acquired through mining, inheritance, and even buying and selling.
This line of argument is similar to when a Singapore judge crypto/judge-declares-crypto-is-personal-property/” rel=”nofollow noopener” target=”_blank”>declared crypto personal property. In that case, the judge compared cryptocurrencies to fiat and stated that since the latter are considered personal property, the former should be considered as such as well.
He also stated that cryptocurrencies cannot be said to have no value, as value is “a judgment made by a set of human minds.” This is similar to what the Shanghai court said in this article, that the Chinese still use digital currencies as a medium of exchange despite the existing ban.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/09/Bitcoin-Moves-Toward-Widespread-Legitimacy-Following-Shanghai-Court-Ruling" alt="Tradingview.com bitcoin Price Chart (Shanghai Court)” width=”2884″ height=”1746″/>
btc starts out the week on a low note | Source: BTCUSD on Tradingview.com
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