China- The Chinese government and the People’s Bank of China has over the course of the past months maintained stiff regulations on Bitcoin and cryptocurrency related products; especially ICO’s. However in a much predicted turn of events as characteristic of the Asian big wig; the country’s high court (The Court of International Arbitration) has ruled in favour of Bitcoin and cryptocurrencies.
This verdict by the Chinese court, was necessitated by a case brought to its attention, involving about half a million dollars in cryptocurrency split between 20 Bitcoin, 70 Bitcoin Cash and 125 Bitcoin Diamond. The case has by the court’s order, set a new precedent for crypto jurisdiction in China’s space.
China’s Merchants Legally Allowed to Accept Crypto
By its verdict, the Shenzhen Court officially recognized Bitcoin and crypto as property. Hence, allowing merchants, business owners and nationals to accept crypto as payment, own and transfer cryptocurrency without any conflicting financial regulations.
The court specifically states:
China’s law does not forbid owning and transferring Bitcoin, which should be protected by law because of its property nature and economic value. There is no law on the books prohibiting the possession or acquisition of cryptos.
In essence, the court proves that the decentralized nature of Bitcoin and most cryptocurrencies which offer financial freedom and economic value to the owner, can be recognized as property.
Affirming the court’s position on the subject, Bitcoin has characteristics of a property: can be controlled by the owner, has an economic value and does not break any laws.
What This Represents For China
Given the importance of courts in China and the current gray status as regards cryptocurrency in the Asian republic, this ruling would set a precedent for more clarity on this subject.
The ruling also buttress facts that the Chinese government is yet to reach a wholesome decision on cryptocurrencies and is not uniformly opposed to digital assets. Its government has been selective on regulations as to place a blanket ban on crypto in what many believe is aimed at preventing the devaluation of the Chinese Yuan and to curtail speculation in the digital assests market.
To this end it is clear that the popular notion “Whatever China ‘claims’ to ban, invest in it” is rightly demonstrated. If people can hold or own cryptocurrency in China; while its government still explores crypto and blockchain development then, it won’t be long before the government will once again allow full participation of citizens in all crypto-related activities.