Chinese citizens are legally allowed to own bitcoin. This was revealed through a recent research report released by Council Member at the Bank of China’s Law Research Association— Sa Xiao Wei.
According to Sa Xiao, contrary to popular belief, owning bitcoin in China does not count as a legal offence, even with the ban in place.
Sa Xiao Wei Says OTC Trading is Legal
Furthermore, Xiao made it known that the “occasional exchange of bitcoins between individuals and individuals is legal.”
Sa Xiao also made it known that according to the country’s law, doing so is an act of “disposition of power” whereby an owners transfer an asset to a new owner along with rights associated with the asset.
Therefore, “how to dispose of it is the private right of the owner, and others have no right to interfere.
As such, crypto OTC trading is also not considered a crime.
Good But Not Good Enough
Although, positive news for the entire Chinese crypto community, there is no cause for celebration yet. This is mainly because there are several interconnected crypto laws in the country which can still get one in trouble.
Reportedly, China currently has 461 court judgments related to “Bitcoin”. This number is steadily increasing. As of the last five years, only 9 bitcoin-related judgement was in court.
According to local media CnLedger, Sa Xiao Wei and some other lawyers have reached an agreement that according to the Country’s Criminal Law, “non-p2p trading may fall under the Article 225, numeral 3 of the Criminal Law, “Other illegal business operations that seriously disrupt market order”.
According to the publication, Xiao’s views are centred around “the current legal framework which protects people’s rights of virtual properties (Bitcoin included).”
The Chinese Government is Heavily Invested in Blockchain Technology
The Chinese government has been investing in blockchain technology despite its ban on cryptos.
Recently, a Chinese city government blockchain fund was launched. The fund has $1.6 billion available to invest in innovative startups.
Reportedly, China accounts for more than70% of the total Bitcoin network’s hashrate.
Xi Jinping, the country’s president has also made it known that blockchain will be part of the “new industrial revolution.”
Joshua Tayo is a Nigerian Freelance writer, who loves to write about anything related to technology. His interest in Cryptocurrency started in 2015, and it has not stopped since.