The District Court of China declared Bitcoin to be Virtual Property
The Shanghai Minhang Court has declared Bitcoin to be a form of digital property. The court argued that BTC is a fungible, exchangeable, and non-exclusive virtual asset.
Bitcoin Exchange Value as a tangible asset that may be converted into a virtual asset Yesterday, China‘s district court published a comprehensive study on the protection of visible and intangible virtual property. The article argued that Bitcoin’s trade value justified its classification as digital property. It contends that the resources, property, and energy that have a sufficient exchange value fall under the category of virtual property.
According to the Shanghai Minhang Court, Bitcoin is a virtual product because it is obtained through legitimate labor. Additionally, it is a disposable, interchangeable, and one-of-a-kind item. Additionally, by acquiring the status of a virtual commodity, Bitcoin acquires the value associated with the virtual property.
The court did, however, emphasize BTC’s lack of monetary qualities and its inability to be utilized as a currency in the country. The paper cited the absence of legal recourse and coercion as reasons for BTC’s unregistered position as a market currency.
Astonishing ruling in a Bitcoin lawsuit before a Chinese district court
According to Chinese journalist Colin Wu, the paper cites a case establishing BTC’s virtual property status. The complaint attributes the origin to the plaintiff’s online purchase of BTC mining machines from the defendant. Despite China’s crypto crackdown, the plaintiff later asked for a refund. The refund request describes the acquisition of BTC mining machines as illegal, therefore nullifying the purchase contract. The district court, on the other hand, refuses reimbursement claims by referring to BTC as a virtual commodity.
China’s position on Bitcoin is contradicted by a district court
With China’s growing crackdown on cryptocurrency, the district court’s article is inconvenient. The nation has not been kind to cryptocurrency advocates, and officials from Shanghai Minhang Court may be the next target. China’s autocratic government is escalating the campaign by shutting down mining sites and forcibly displacing miners.
Additionally, the Chinese Central Bank has prohibited software companies involved in crypto trading from operating, as well as warned Chinese businesses against leasing any type of office space to virtual-currency organizations. Former Chinese exchange giants Huobi and OKCoin became the latest victims of the crackdown when their Beijing subsidiaries were shut down.
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