Shanghai District Court declares Bitcoin to be virtual property

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A Shanghai district court has ruled that Bitcoin is virtual property, not a currency allowed to circulate, according to a statement released earlier this week.

Fast facts A Minhang District Court in Shanghai said this week it had heard a case in which a plaintiff bought Bitcoin mining machines from a defendant, but then claimed the deal was invalid given the guidelines of the People’s Bank of China in 2017 which banned the initial coin offering and therefore demanded a refund for the machines. The court said it had ruled the deal to be valid and although Bitcoin is not a currency, it holds the attributes of a virtual product given its exchangeability, exclusivity and availability. The court also described the Tencents QQ coin and points, Baidus virtual coin, and virtual currencies like Bitcoin as virtual properties, as they require a certain degree of resources, properties, and energy to be obtained. The latest court decision is consistent with a previous court decision. The Hangzhou Internet Court, started in 2017 to hear Internet-related cases, recognized Bitcoin in 2019 as legal virtual Internet property that deserved to be treated like other assets. However, other crypto-related cases reveal nuances from the courts. In July, a court in the capital Jinan, eastern province of Shandong, said in a statement that cryptocurrency buying behavior was not protected by law and that contracts related to such transactions were not protected by law. were not protected either. China’s central bank has pledged to continue its crackdown on cryptocurrency trading and speculation as part of its work plan for the second half of the year. Last month, for example, a Beijing company suspected of offering software services for crypto trading was ordered to shut down and shut down its website.

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