Bitcoin Recognized As A Digital Currency In Shanghai
A recent Shanghai People’s Court announcement in China acknowledged Bitcoin as a unique digital currency despite the country’s official ban on cryptocurrencies. Justin Sun, the founder of Tron, brought attention to the Shanghai No. 2 Intermediate People’s Court, which published an article affirming certain characteristics of Bitcoin.
In the article, the Shanghai court recognized Bitcoin as a distinctive digital currency, setting it apart from virtual counterparts like Q coins. It cited Bitcoin’s rarity, global acceptance, and inherent monetary qualities. This stands in contrast to China’s conventional classification of cryptocurrencies as speculative investments.
China’s crypto ban remains strong
Regulatory bodies in China have prohibited cryptocurrency trading and mining. However, the court expressed the view that Bitcoin’s attributes make it challenging to ignore in legal contexts. When disputes arise regarding theft or ownership, the article suggests that Bitcoin can be considered personal property, acquired through purchase, mining, or inheritance.
This announcement builds upon a previous decision by a Shanghai court in May 2022 that also acknowledged Bitcoin’s legitimacy. At that time, a legal expert argued that China’s laws could indeed protect cryptocurrency holders despite the trading ban.
It’s essential to note that the recent article does not represent an official policy shift. The ban on cryptocurrency trading remains firmly in place. However, the recognition of cryptocurrency as property strengthens legal positions related to ownership within the existing constraints.