They emphasize that citizens could change the cryptocurrency game in China. The virtual property is legally protected by the laws of the Asian giant.
A court in China on Thursday, July 18th, 2019, reaffirmed Bitcoin’s virtual property attribute, that is, it recognized it as a virtual property with value.
Via Twitter, Dovey Wan, said on Thursday: “Today ended the trial of the first property dispute case regarding Bitcoin in a Chinese local court. The court confirmed Bitcoin’s ‘virtual property’ attribute. “
However, although the source claims that it is the first time that the Chinese justice recognizes virtual property, nine months ago the Shenzeng Court of International Arbitration assured that Bitcoin “should be considered property with economic value.”
Regarding Thursday’s ruling of the Court, it was learned that someone bought 2.6 bitcoins in 2013, which were in the custody of the seller, but the latter closed the deal without any notice and did not deliver the cryptocurrencies to the buyer, who then proceeded to sue him.
The Meaning of this Decision
This trial became an important milestone, since it was stated that Bitcoin is really legal in China. In this regard, it should be noted that Bitcoin has property attributes: valuable, scarce and available. Consequently, it must be recognized as virtual property.
According to “General Civil Law”, virtual property is legally protected by the laws of the People’s Republic of China.
Specialists warn that, although keeping Bitcoin as private property is legal, it does not necessarily mean that the Bitcoin trade is systematically legal. Despite cryptocurrency exchange is legal in China, “there is still a long way to go.”
China Could Change the Game
Internet users were satisfied with the decision and indicated that Chinese citizens could change the cryptocurrency game if legality is widely accepted.
The China Securities Daily highlights that Bitcoin’s virtual property attributes were first recognized by the Chinese judiciary.
The daily states that, on July 18th, “the first dispute case” regarding infringement of Bitcoin property was declared at the Hangzhou Internet Court. They said that this trial court had “confirmed Bitcoin’s ‘virtual property’ attribute” and that it was “the first time” that Chinese courts have determined the virtual property attributes of a digital currency such as Bitcoin.
Similarly, regarding the attributes of Bitcoin’s virtual property, the Hangzhou Internet Court held that Bitcoin has the value, scarcity and availability of property as a subject of rights, and so its virtual property status should be recognized.
Experts told the daily that this was “the first” full discussion on Bitcoin’s virtual property in a Chinese court. The determination of the judiciary in the judgment has an extraordinary meaning when dealing with current disputes and others that may arise in the future regarding virtual currencies.
Background
In November 2018, it was learned that despite the refusals to resort to cryptocurrencies in commercial transactions in China, the Shenzeng Court of International Arbitration asserted that Bitcoin should be qualified as “property with economic value.”
The judicial authority in financial cases of the commercial city of Shenzeng released a statement in which it ruled that Bitcoin, Bitcoin Cash and Bitcoin Diamond should be validated as a property.
By Willmen Blanco
