May 25, 2022

In China, the court recognized bitcoin as a legally protected asset

The Shanghai District Court ruled in favor of the bitcoin owner and awarded him compensation. The court recognized that bitcoin propriety rights, rules and laws apply, and published a document confirming this.

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The decision was made in connection with a claim filed inOctober 2020, in which the prosecutor sought the recovery of a loan of 1 BTC. The Supreme People's Court of Shanghai has recognized that 1 BTC has value, so the lender has a legal right to a refund.

This case is of historical significance, given the circumstances that earlier China introduced an official ban on cryptocurrencies, citing fears of destabilization of the financial sector of the country.

The court ruled in favor of the plaintiff Cheng Mou, adefendant Shi Moumu is now required to return BTC. However, this will not be easy to implement, since operations with cryptocurrencies in China are no longer considered legal. In this regard, the injured parties agreed on a compromise, deciding that the defendant would pay compensation at a reduced price of BTC.

Beijing lawyer Liu Yang commented on the decisioncourt as “an important starting point for civil disputes related to bitcoins”, however, he is not sure to what extent it will affect the current situation. It is well known that the Chinese government opposes cryptocurrencies, and since 2017 has been making efforts to curb its use in the country.

Now the Chinese authorities are betting on their owndigital currency Chinese digital yuan, which was actively used at the 2022 Winter Olympics in Beijing. Now the Chinese CBDC is rapidly being implemented among Chinese citizens in all spheres of life.

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