China has recognized cryptocurrencies as the property of citizens
Date: 2023-09-01 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
The People's Court of China has released a report on virtual assets, according to which cryptocurrencies are recognized as the property of citizens.
Thus, the document states that virtual assets within the framework of the current legal policy are still legal property and are protected by law. Such logic comes from the fact that virtual assets have economic properties and, therefore, they can be classified as property.
While China has outlawed all foreign cryptocurrencies with a total ban, the report argues that virtual assets owned by citizens should be considered legal and protected under current policy.
The document also contains proposals to combat crimes in the field of cryptocurrency. It states that since the money and property involved in the case cannot be confiscated, it must be based on criminal and civil law.
Chinese judges contradict the official position of the authorities
Now in China there is a complete ban on all activities related to cryptocurrency. Moreover, the authorities have banned foreign crypto exchanges from offering their services to clients from mainland China. However, despite the restrictions, Chinese judges have repeatedly expressed the opposite position regarding cryptocurrencies and other digital assets.
Such a case occurred in May 2022, when a Shanghai court confirmed that Bitcoin (BTC) should be treated as virtual property and thus subject to property rights.
China remains an important region of the crypto market
Cryptocurrency bans have not prevented China from becoming an important region for the crypto industry. Last year, China still accounted for about 10% of all bitcoin transactions. The People's Bank of China reported that the volume of bitcoin transactions in the country has decreased from 90% since the introduction of a complete ban.
In addition, another report showed that the Binance cryptocurrency exchange allowed customers from China to make transactions of approximately $90 billion every month. These transactions led to Binance becoming the largest crypto exchange in China, accounting for 20% of the global volume.
