The High Court recognized Bitcoin as a financial value and said they should handle it on a par with other assets. The court ruled that Shi Moumou must give Cheng Mou his only Bitcoin back within ten days of sentencing.
The Chinese law now protects Bitcoin (BTC) as virtual property, following a new ruling by the Shanghai High People’s Court. That has taken a new turn in the Asian country concerning the pioneering cryptocurrency.
According to local media, the above High Court has formed a unified opinion on the legal position of Bitcoin. In the actual practice of the trial, they identified it as virtual property.
Liu Yang, a lawyer from Beijing, stated that the court’s ruling would serve as a benchmark for Bitcoin-related civil litigation in Shanghai. He also said that this is the first time a High Court has dealt with a cryptocurrency-related case.
The Chinese People’s High Court is now the highest practical community court in the provincial area. However, nobody knows whether other high courts will share the same view about Bitcoin.
The High Court Says that Bitcoin Is a Virtual Asset
The Shanghai High Court has just ruled that Bitcoin has economic value and officially protects it as a digital asset.
The High Court issued a notice where it recognized Bitcoin as a financial value. They said that the law should handle it on a par with other assets and protect it.
Anyway, the People’s High Court agreed on the legal position of Bitcoin, ruling that it is a virtual property. They said the crypto asset would have to follow the principles dictated by law as it has economic value as an asset.
That ruling could be significant for civil disputes over Bitcoin and other cryptocurrencies in China. It is relevant to remember that the Chinese government banned the mining of crypto assets in the territory last year.
Why the Court Rules that Bitcoin Is a Financial Asset
The statement of the High Court about a case involving Mr. Cheng Mou allows a better understanding of the situation. In October 2020, he filed a lawsuit with the Shanghai Baoshan District People’s Court demanding that Mr. Shi Moumou return his only bitcoin.
On February 23rd, 2021, after the trial, the court ruled that Shi must return the BTC of Cheng within ten days of sentencing. As Moumou refused to do so, Mou decided to seek further redress from the local court system. After that, the Baoshan court arranged for a mediation session between the two parties, which occurred in May 2021.
The High Court declared Bitcoin a virtual asset protected by the law despite the ban on cryptocurrencies in China. The authorities of the Asian countries have had their sights on them for their alleged relationship with illegal activities.
Bitcoin is trading at around USD 30,789 and has accumulated a 2.7% gain over the last 24 hours. While its daily trading volume is above USD 22.79 billion, its market capitalization is roughly USD 587.69 billion, according to CoinGecko.
By Alexander Salazar
