In a step toward regulatory clarity for Bitcoin holders in China, a court in Shanghai issued an opinion stating that personal ownership of digital assets is not illegal under… Chinese law.
Personal Bitcoin ownership is legal
opinion, Articulated Written by Sun Jie, Judge of the Shanghai Songjiang People’s Court, and published on the official WeChat account of the Shanghai Supreme People’s Court.
Sun emphasized that although individuals are allowed to own cryptocurrencies, commercial entities in China are still prohibited from engaging in cryptocurrency investments or issuing tokens without regulatory approval.
This clarification was part of the court’s review of a lawsuit related to disputes between two companies over… Initial coin offering (ICO), which is considered illegal financing in China.
China has long viewed crypto assets as a potential threat to financial stability, leading to strict regulatory measures. In 2017, the government banned ICOs and closed cryptocurrency exchanges, and in 2021, it intensified its measures. campaign By banning Bitcoin mining and declaring commercial activities related to cryptocurrencies illegal.
Despite this background, Sun pointed out that cryptocurrencies are considered virtual goods with property-like attributes, and are not prohibited for personal ownership.
“Laws and regulations continue to crack down on speculative activities in cryptocurrency trading,” Son stated, underscoring the government’s approach to the industry.
These sentiments are consistent with Beijing’s broader strategy to prevent “disruptions” in the economic and financial system, particularly in light of concerns about… Illegal activities It is facilitated by cryptocurrencies.
Regulatory tensions in China
In a related incident, Yao Qian, former director of the Cryptocurrency Research Institute of the People’s Bank of China, was implicated in a cryptocurrency-related bribery case, highlighting the complexities and contradictions within China. Regulatory landscape.
While the latest opinion provides clarity, it has been an open secret among industry insiders that individual cryptocurrency ownership has been tolerated. Some courts have previously ruled that cryptocurrencies should be treated as protected property under existing legal frameworks.
However, there is no indication that Beijing intends to relax its strict regulations on… encryption The industry, despite experts’ calls for a more open market approach.
Zhou Guangyao, former vice minister of finance, noted in September that cryptocurrencies are “crucial” to the digital economy. He suggested that China will adapt to remain competitive as the United States embraces the industry, especially with President-elect Donald Trump and his plans to use Bitcoin as a strategic reserve for the country in his next administration.
At the time of writing, the largest cryptocurrency on the market has reached a new all-time high of $94,730. Bitcoin is up 2.5% over the past 24 hours, after settling between $89,000 and $92,000 over the weekend and into Monday.
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