By Nathan Ferguson
The controversial crypto space of China has witnessed a unique turn following the announcement of the judgment that a specific economic value is possessed by BTC (Bitcoin) and it is a virtual asset that has protection under the laws of the country. A notice was posted on the behalf of the court on WeChat (a messaging venue) that an economic value is held by Bitcoin and some specific property characteristics are represented by it, as reported by Bitcoin.com.
The respective judgment is massive keeping in view that the country has prohibited Bitcoin as well as the rest of such cryptocurrencies, referring to a hazard posed to the stability of the financial sector of China. The ruling notes that in the trial activity, a united opinion has been formed by the People’s Court on the legal place of BTC, as well as indicating it as a virtual good. It also stated that particular economic value is contained by Bitcoin and in line with the characteristics of the product, it is protected under the law of property rights.
The decision of the court is the initial ruling given by the legal system of China in the case of BTC. It is noteworthy that the respective court is positioned to be the highest among the native courts operating across the provinces. Nevertheless, it is even now ambiguous whether the rest of the similar higher courts can adopt an analogous point of view regarding Bitcoin.
The influence of the court order
While discussing the ruling, a Beijing-based lawyer named Liu Yang stated that the court order would play the part of an important point of reference for the civil disputes related to Bitcoin across the zone of Shanghai. The ruling originates from a case of October 2020 where a person called Cheng Mou submitted a case under the Shanghai Baoshan District People’s Court, requiring that his one BTC should be returned on the behalf of Shi Moumou.
Nevertheless, the defendant remained unsuccessful in recompensing the BTC as was ordered within ten days. Cheng decided to pursue compensation from the court where intermediation was conducted by the court between both parties of the case.
The consistent crypto opposition by China
A longstanding opposition has been posed by China against crypto, the directive of the previous year to illegalize crypto mining, as well as trading, had influenced the general market to a great extent. As a result, numerous crypto miners were excluded from the country. Since then many crypto regulations have been introduced by the authorities to block the possible loopholes.