The Shanghai Supreme People’s Court issued a document stating that Bitcoin is subject to property rights laws and regulations. This conclusion was made in connection with a lawsuit filed in the district court in October 2020 regarding the recovery of a loan of 1 bitcoin (BTC). The lower court found Bitcoin to have value, rarity, and disposability, and therefore subject to property rights and meet the definition of virtual property.
According to the Sina website, the Shanghai Baoshan District People’s Court ruled in favor of the plaintiff Cheng Mou, ordering the defendant Shi Moum to return the bitcoin. When the defendant failed to do so, the case was returned to the court, which conducted mediation in May 2021. Since the defendant no longer owned the Bitcoin, the parties agreed that the defendant would provide compensation at a discount to the value. Bitcoin at the time of the loan.
The current value of Bitcoins cannot be ascertained as their trading is prohibited in China. The case was also complicated by the restrictions of judicial investigative and executive bodies, which cannot make requests for virtual property, the newspaper notes.
China began cracking down on cryptocurrency trading and stepped up efforts in 2017. The government continued to gradually disconnect cryptocurrency miners from the power grid and KV against cryptocurrency markets. He has since turned his attention to “illicit financial activities related to the NFT.”
Related: Bitcoin network carbon emissions jump 17% after China ban: report
At the same time, China has become the world leader in the adoption of central bank digital currency (CBDC). The digital yuan was widely used for the first time, despite Covid restrictions, at the Beijing Winter Olympics.
