China court in the latest case rules Bitcoin protected by law as property as the China laws and regulations do not prohibit the private ownership and transferring of Bitcoin.
China court rules Bitcoin protected by law as property
The Chinese court, Shenzhen International Arbitration Institute (Shenzhen Arbitration Commission) in a case involving cryptocurrencies attributed Bitcoin as a property that is indeed protected by law.
As mentioned by the court, the “case is a dispute over equity transfer, which is a new type of case because it involves special types such as BTC (Bitcoin), BCH (Bitcoin Cash), and BCD (Bitcoin Diamond).”
It further points out that China has not clearly defined the legal attributes, concept, and delivery of Bitcoin at the legal and administrative level.
According to the case analysis put on the web by the court states the plaintiff went into an agreement with the defendant in order to manage his cryptocurrencies. But the respondent did not return the cryptocurrencies in accordance with the contracts citing the illegal nature of Bitcoin and cryptos in the country making the contract invalid. The disputed cryptos involve 20.13 BTC, 50 BCH, and 12.66 BCD.
However, the court argued the point with,
“The bitcoin return contract concluded between private individuals does not violate the mandatory provisions of the legal and regulatory effects and should not be considered invalid. Chinese laws and regulations do not prohibit privately held and legally transferred bitcoin.”
Second, although Bitcoin exists in the virtual space of the network, it has special characteristics in terms of possession and publicity of rights change, but it does not prevent it from becoming an object of delivery.”
It further adds,
“The arbitral tribunal held that Bitcoin is not a fiat currency and does not prevent Bitcoin from being protected by law as a property.”
Bitcoin is in fact governed by property rules and regulations as court defines here,
“The agreement can be seen that Bitcoin has Property attributes can be dominated and controlled by manpower, have economic value, and can bring economic benefits to the parties.”