China’s District Court declares Bitcoin (BTC) as Virtual Property

Published by
China’s District Court declares Bitcoin (BTC) as Virtual Property

Shanghai Minhang Court has announced the status of Bitcoin as digital property. The court has argued that BTC is a virtual asset that is disposable, exchangeable, and exclusive.

Advertisement

Bitcoin Exchange Value as property to become a virtual asset

Yesterday, China’s District court published a detailed article on the protection of virtual property that is visible and intangible. The piece asserted Bitcoin’s exchange value as the reason for its status as digital property. It argues that the resources, property, and energy that holds adequate value for exchange, in turn, comes under the virtual property.

Shanghai Minhang Court highlighted that Bitcoin is a virtual product as it is obtained through legal labor. Additionally, it is disposable, exchangeable, and exclusive. Furthermore, by gaining the status of a virtual commodity, Bitcoin also achieves the value of the virtual property.

However, the court also mentioned BTC’s lack of monetary properties and its inadequate status to be used as a currency in the country. The article mentioned the absence of legal compensation and compulsion as the reason for BTC’s unregistered status as a currency in the market.

Advertisement

Bitcoin lawsuit’s surprising verdict in China’s District court

Chinese Journalist, Colin Wu reported on Twitter that the article states a case confirming BTC’s virtual property status. The filing portrays the online purchase of BTC mining rigs by the plaintiff from the defendant, as the origin point. The plaintiff later filed for a refund despite China’s crypto crackdown. The refund request states BTC mining rigs’ purchase as illegal, thereafter nullifying the purchase contract. However, the district court denies claims for a refund by referring to BTC as a virtual commodity.

District Court contradicts China’s stance on Bitcoin

With China’s expanding crypto crackdown, the district court’s article has come as a contradiction. The nation has not been sparing of crypto supporters, and Shanghai Minhang Court’s officials may be the next target. China’s authoritarian government is extending the crackdown by the shutdown of mining operations, and the miner’s migration.

The Chinese Central Bank has also imposed a ban on the operations of software companies involved in crypto trading, along with the Central Bank’s warning to Chinese businesses against offering any kind of office space to virtual currency businesses. Former exchange giants in China, Huobi, and OKCoin became the latest victim of the crackdown with the closure of their Beijing subsidiaries.

Advertisement

Share
Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Ripple Partners with Ondo Finance to Tokenize U.S. Treasuries on XRPL

Ripple has partnered with Ondo Finance to combine traditional finance with blockchain technology. This partnership…

September 27, 2025
  • 24/7 Cryptocurrency News

Ethereum Exchange Supply Drops 52% as $3,700 Liquidation Risk Grows

Ethereum’s exchange supply has dropped by more than 52% from their 2016 levels, hitting a…

September 27, 2025
  • 24/7 Cryptocurrency News

XRP News: mXRP Vault Surpasses $22M as Investors Capitalize on Staking Rewards

Axelar and Midas's mXRP vault has surpassed $22 million in deposits within days of launch.…

September 27, 2025
  • 24/7 Cryptocurrency News

Galaxy Digital CEO Calls Next Fed Chair Bitcoin’s Bull Catalyst, Sets $200K BTC Target

Galaxy Digital’s CEO believes that the appointment of the next Fed chair could trigger Bitcoin…

September 27, 2025
  • Bitcoin News

Experts Claim Bitcoin Crash to $94,334 Ahead As BTC Dominance Rebounds

Bitcoin (BTC) price is seeing strong selling pressure, correcting another 6% over the past week…

September 27, 2025
  • 24/7 Cryptocurrency News

Expert Explains Pi Network–Sign Meeting, Says It Could Trigger Binance Listing

The Pi Network has been gaining attention in light of its recent partnership with blockchain…

September 27, 2025