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Bitcoin Must Be Protected by Chinese Law

by Poker King|July 22/2019|views: 54

As mentioned in China’s leading news source BJNews, the court pronounced the first case of Bitcoin infringement dispute on July 18, 2019.

The initial claim stated that Bitcoin and other crypto tokens can be and should be considered an asset with financial value, thus those must obtain “property” as official terminology, having its own financial worth.

Such bill has been under the radar since 2013 until 2017, when trading with crypto was forbidden in Mainland China.

A Chinese buyer filed a statement that back in 2013 he purchased 2.675 Bitcoins from a trading website, operated by a Shanghai company through the Taobao platform but when tried to login in 2017, the website was closed, which led to huge economic losses. Any virtual currencies were banned already, thus the company that served as a middleman, didn’t fulfill its audit obligation, buying prohibited goods.

The Internet court did his judgement on the network property infringement dispute. Hangzhou Internet Court could not prove the company and the Taobao-based trading site had the same identity. The court, however, voted in favor of the buyer, having stated that Bitcoin was a “virtual property” and hereby was protected by the law.

Despite the court’s ruling, Bitcoin tokens still cannot be legally considered a financial asset in the country.

Xiao Wei, director of the Bank of China Law Society, has stated earlier this year the legal attributes of Bitcoin: “specific virtual goods” that should be treated under the “General Principles of Civil Law”, confirming that virtual property is protected in China, making it legal to own Bitcoins.