China’s Shanghai No.2 Intermediate People’s Court has officially recognized Bitcoin as a unique and non-replicable digital asset with inherent value and scarcity. In a report released by the court on September 25, it noted that with the advancement of internet technology, digital currencies like Bitcoin distinguish themselves from other assets. The report highlighted Bitcoin’s distinct features, including scalability, circulation, storage, and payment capabilities. This recognition by a prominent court in Shanghai provides greater legitimacy to Bitcoin and other digital currencies in China. Despite the Chinese government’s blanket ban on cryptocurrencies, local Chinese courts have been acknowledging Bitcoin as personal property protected by law.
This latest recognition of Bitcoin’s attributes comes in contrast to the hostile attitude of the Chinese government towards the cryptocurrency. China implemented a ban on all forms of cryptocurrency activities, including Bitcoin mining, in 2021. However, multiple Chinese courts have acknowledged Bitcoin and other digital assets as legal properties, which has gained traction in legal arguments. This recognition from Shanghai’s key court further bolsters the legitimacy of Bitcoin and digital currencies in the country, despite the government’s strict regulations.
As reported earlier, a People’s Court in China released a report on the legality of virtual assets, confirming that digital assets qualify as legal property and are protected by law. This indicates a growing acceptance of cryptocurrencies within the Chinese legal system. While the Chinese government maintains a strong stance against cryptocurrencies, the recognition of Bitcoin’s unique attributes by Chinese courts signals a shift towards acknowledging and protecting these digital assets within the legal framework. This recognition may have significant implications for the future regulation and adoption of cryptocurrencies in China.