In a step toward regulatory clarity for bitcoin holders in China, a Shanghai court issued an opinion affirming that personal ownership of digital assets is not illegal under chinese law.
Legal bitcoin Personal Ownership
The opinion, <a target="_blank" href="https://www.scmp.com/tech/blockchain/article/3287415/shanghai-court-says-crypto-ownership-legal-under-china-law-amid-bitcoin-price-surge” target=”_blank” rel=”noopener nofollow”>articulate Written by Sun Jie, judge of the Shanghai Songjiang People's Court, it was posted on the official WeChat account of the Shanghai Higher People's Court.
Sun emphasized that while individuals can own cryptocurrencies, business entities in China are still prohibited from making investments in cryptocurrencies or issuing tokens without regulatory approval.
This clarification was part of the court's review of a lawsuit involving disputes between two companies over a initial coin offering (ICO), which is considered illegal financing in China.
China has long viewed crypto assets as a potential threat to financial stability, leading to rigorous regulatory measures. In 2017, the government banned ICOs and shut down crypto exchanges, and in 2021 it stepped up its Campaign banning bitcoin mining and declaring commercial activities related to cryptocurrencies illegal.
Despite this context, Sun noted that cryptocurrencies are considered virtual commodities with property-like attributes, which are not prohibited for personal ownership.
“Laws and regulations maintain strong pressure against speculative activities in cryptocurrency trading,” Sun said, underscoring the government's approach to the industry.
This sentiment aligns with Beijing's broader strategy to avoid “disruptions” to the economic and financial order, particularly in light of concerns about illegal activities facilitated by cryptocurrencies.
Regulatory tensions in China
In a related incident, Yao Qian, former director of the People's Bank of China's digital currency research institute, was implicated in a cryptocurrency-related bribery case, highlighting the complexities and contradictions within the Chinese system. regulatory landscape.
While the recent opinion provides clarity, it has been an open secret among industry experts that individual ownership of cryptocurrencies has been tolerated. Certain courts have previously ruled that cryptocurrencies should be treated as protected property under existing legal frameworks.
However, there is no indication that Beijing intends to relax its strict regulations on the crypto industry, despite calls from experts for a more open market approach.
Zhu Guangyao, former vice minister of finance, commented in September that cryptocurrencies are “crucial” to the digital economy. He suggested that China must adapt to remain competitive as the United States embraces the industry, especially with President-elect Donald Trump and his plans to use bitcoin as a strategic reserve for the country in his next administration.
At the time of writing, the largest cryptocurrency on the market has reached a new all-time high of $94,730. bitcoin is up 2.5% in the last 24 hours, after consolidating between $89,000 and $92,000 over the weekend and Monday.
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