Supreme Court of China: Bitcoin Protected under Chinese Law

The court also attributed economic value to Bitcoin. ”In practice, the People’s Court has formed a unified opinion on the legal situation of Bitcoin and classified it as virtual property,” it said on the official WeChat channel.

In October 2020, Cheng Mou demanded the return of one (1) Bitcoin from Shi Moumou, which Mou claimed belonged to him. Moumou, the defendant, refused to return the Bitcoin and took the case to the District People’s Court. At the arbitration in May 2021, the parties agreed that the defendant must pay compensation in the amount of the value that the Bitcoin had at the time of lending.

The case eventually reached the Shanghai High People’s Court. The Supreme People’s Court is the highest court in China.

A New Crypto Precedent in China?

The latest decision could set a new precedent for how virtual assets are viewed in Chinese law. In the past, the Chinese government has discouraged crypto trading and shunned miners to reduce energy consumption. Last year, China finally banned all crypto transactions and mining activities within the country.

“Business activities related to virtual currencies are illegal financial activities“according to a statement from the People’s Bank of China last September. She also warned Chinese citizens not to trade cryptos, as it ”could seriously jeopardize the security of the assets”.

A High People’s Court in China is the highest local court in Chinese provinces after the People’s Court and the Intermediate People’s Court. Similar to the structure of the Supreme People’s Court, the High Court is also directly controlled by the central government.

Digital Yuan expands to transport networks

Meanwhile, China has taken steps to introduce a central bank digital currency (CBDC) with its digital yuan. Since its launch, the use of the digital yuan has skyrocketed. The cities of Xiamen and Guangzhou are the latest to introduce the currency in the transport sector.

The People’s Bank of China announced that it will expand the CBDC pilot project to eleven more cities. Thus, 23 cities are already participating in the program.

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