The court in China, after looking into one of the cases, considered Bitcoin as a virtual property of a certain value, which, in turn, makes it a legally protected asset there.
China and cryptocurrencies
China has been regarded for a long time as one of the largest opponents of cryptocurrencies in the world. Western media have been consistently building the opinion that China bans Bitcoin
Nevertheless, it is a fact that they are an integral part of the whole ecosystem, because nearly half of the hashrate comes from Chinese miners. On the other hand, Chinese authorities have indeed banned local crypto exchanges.
It is not forbidden, though, to possess cryptocurrencies in China and exchange them between natural persons. Politicians also consider the advantages of blockchain. The goal is, of course, to compete with the United States for economic primacy in the world.
On July 18,
a court in Hangzhou
dealing with technology cases issued the first Bitcoin judgment. According to the rule "Bitcoin holds the same attributes as property on valuable, scarce and disposable side and should therefore be treated as "virtual property".
According to civil law in China, virtual property is legally protected by the People's Republic of China.
The reactions to this verdict are rather positive, as it can make the Bitcoin community in this country breathe a sigh of relief. What is more, it is possible that the state will become more favorable to cryptocurrencies from the legal point of view.
Dovey Wan, who is one of the Hardcore Fund executives,
that is a fund to support the Bitcoin community, posted a tweet in which a lot is said about the judgment:
Wow, Bitcoin is legally protected in China.