Cryptocurrency Is Virtual Property That Is Protected by Law, Chinese Court Rules – Regulation Bitcoin News

A Beijing-based Chinese intermediary court recently upheld a lower court ruling, which determined that cryptocurrencies are virtual assets protected by law. The court clarified that regulations issued by the Central Bank of China and others only prohibit the circulation of virtual currencies.

‘The act of sponsoring is prohibited by law’

An intermediate court in China recently upheld a lower court ruling that designated litecoins as virtual assets protected by the country’s laws, a report said. The court clarified that the relevant administrative regulations of the country only prohibit the circulation of virtual currency or its use as a currency.

The Beijing-based court ruling follows an appeal by Chinese resident Ding Hao, who wants it to overturn a lower court ruling in a case where he allegedly failed to return 33,000 litecoins. (LTC) by agreement with Zhai Wenjie.

According to one documents issued by the courtOn December 5, 2014, Hao received 50,000 VND LTC from Wenjie and is obliged to return it in four installments. Last payment 8,334 LTC Court documents show that it should have been paid by October 15, 2015.

However, citing regulations issued by the Bank of China and related agencies which clearly state that virtual currencies are not protected by law – Hao argued that the lower court was wrong in its ruling. in favor of Wenjie. In addition, Hao attempted to treat his loan contract with Wenjie as “a financing act prohibited by law” and therefore not protected by law.

LTC As a network’

However, in rejecting Hao’s assertion, the Chinese intermediate court emphasized that the provisions cited by the defendant were only “legal opinions” and these did not relieve him of his obligations. .

Regarding cryptocurrencies, the court determined that while LTC As a “network currency”, it still lacks the key attributes of a currency such as “legal and mandatory compensation”. However, cryptocurrencies have the characteristics of virtual assets, and according to the court, Wenjie enjoys the rights from owning such assets.

“The court held that litecoin has the properties of virtual property and virtual goods… Zhai Wenjie may be entitled to the respective property rights and the basis of the property rights claim,” the court document states. .

As a result, the intermediate court ruled that the lower court’s decision would take effect, and Hao had to return 33,000 LTC to Wenjie. News reported on a Similar story from China related to bitcoin earlier this year, in May.

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Terence Zimwara

Terence Zimwara is an award-winning Zimbabwean journalist, author and writer. He has written extensively about the economic troubles of several African countries as well as how digital currencies can provide Africans with an outlet.

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