Bitcoin

Bitcoin gains legal recognition as digital currency in Shanghai, China

The Shanghai Second Intermediate People’s Court in China has reportedly recognized  Bitcoin as a unique and non-replicable digital asset while acknowledging its scarcity and inherent value.

The Chinese court released a report on Sept. 25 discussing the development of internet technologies. The report noted that with the development of Internet technology, digital currencies such as Bitcoin stand out as unique and non-replicable. The report noted that among a sea of virtual currencies, Bitcoin is different and unique from the rest of the digital assets.

The report also shed light on some of the unique properties of Bitcoin including its relative scarcity and property attributes. The report noted that Bitcoin inherits key currency features such as scalability, ease of circulation, storage, and payment. Bitcoin continues to see global usage despite its decentralised nature and lack of central authority administration.

The latest judicial report acknowledging Bitcoin and its attributes as an asset class gives Bitcoin and other digital currencies in China more legitimacy. Despite a blanket ban on cryptocurrencies in China, legal arguments for defining bitcoins as personal property have gained a lot of traction from the local Chinese courts.

The latest recognition from one of the key courts in Shanghai comes despite the hostile attitude of Beijing towards Bitcoin. China imposed a blanket ban on all forms of cryptocurrency activities including Bitcoin mining in 2021. However, several courts in China over the years have recognized Bitoin and other digital assets as legal properties protected by law.

Related: China announces plans for new national financial regulator

As Cointelegraph reported earlier this month, a People’s Court in China released a report assessing the legality of virtual assets and analyzing the criminal law attributes of these digital assets. The report observed that digital assets qualify as legal property and thus are protected by the law.

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Magazine: DeFi faces stress test, DoJ fears run on Binance, Hong Kong’s crypto trading: Hodler’s Digest, July 30–Aug. 5

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