A court in China has recognised bitcoin as a “Legal Commodity”, i.e. an asset with value. This is not the first time it has happened, however, given that the cryptocurrency ban is still in place in China, this is a curious recognition.
Dovey Wan revealed this on Twitter, reporting that the first case of dispute over bitcoin ownership in China has been completed and the court has acknowledged bitcoin as “virtual property”, recognising its value.
WOW 😲 BITCOIN IS LEGALLY PROTECTED IN CHINA
Today the first property dispute case on Bitcoin finalized trial in a local Chinese court. The court confirmed the "virtual property" attribute of Bitcoin, recognized it as a virtual property with valuehttps://t.co/W8ZeqLCYge
— Dovey Wan 🗝 🦖 (@DoveyWan) July 18, 2019
The news was published on the Chinese website Caijing.com.cn, which confirms that for the first time the Chinese judiciary has officially and definitively recognised “the attributes of virtual ownership of bitcoin”.
The Hangzhou Court ruled on the first Bitcoin property litigation case. The judge confirmed that bitcoin should be considered a “legal commodity” and that it has value due to its scarcity.
According to some local insiders, this is the first comprehensive discussion on the ownership of BTC that has been completed in Chinese courts and will inevitably have an impact in similar future disputes.
In the past, cryptocurrencies in China had already been defined as assets by a court, but this time an important detail has been added: the recognition of its value, due to its scarcity and the impossibility of double-spending, which prevents it from being duplicated.
This ruling is not likely to have an impact on the ban on the cryptocurrencies still in place in the country, but it does confer fundamental property rights to any BTC owners in China.
However, Cao Yin, an expert in the Chinese blockchain industry, said:
“This is a clear signal that the financial authorities are starting to loosen control over digital currency and virtual currency”.