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Bitcoin Has Been Declared A Virtual Asset Protected By Chinese Law By The Shanghai High Court

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Bitcoin has been declared a virtual asset protected by Chinese law by the Shanghai High Court. The cryptocurrency has economic value, according to the court.

Despite China’s ban on cryptocurrency trading, the Shanghai High People’s Court has ruled that bitcoin qualifies as a virtual asset protected by Chinese law, according to Sina.

Last week, the court’s official Wechat channel issued a notice that stated:

“In the actual trial practice, the People’s Court has formed a unified opinion on the legal position of bitcoin, and identified it as a virtual property.”

The judge went on to say that bitcoin “has a certain economic value and conforms to the property’s attributes, the legal rules of property rights are applied for protection.”

The declaration is the first time a Chinese higher court has issued a decision in a bitcoin case.

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Mr Cheng Mou, who filed a lawsuit with the Shanghai Baoshan District People’s Court on Oct. 10, 2020, seeking that Mr Shi Moumou restores his one bitcoin, is the subject of the court’s announcement.

Following the trial, on Feb. 23, 2021, the court ruled that Shi must reimburse Cheng his BTC within 10 days of the ruling. Shi, on the other hand, refused to pay, causing Cheng to seek a further remedy through the local judicial system. Following that, the Baoshan court called for a mediation between the two parties.

According to Liu Yang, a lawyer from Beijing’s Deheng Law Firm, the high court’s declaration would serve as a reference judgment for civil issues concerning bitcoin in the Shanghai area.