In a recent ruling, the top court of China’s Northern Shandong province decided against Bitcoin. The plaintiff made a $10,756 investment in the virtual token dispute. In 2017, the litigant purchased a virtual token and filed a lawsuit. Unfortunately, the People’s Bank of China closed the plaintiff’s account in 2018 due to the ongoing Chinese crypto crackdown. After the central bank reiterated its restriction on payment institutions allowing crypto transactions, this happened.
In January of this year, the Shandong High Court upheld the decision of the Jinan Intermediate Court. The plaintiff’s fraud claim was found to be unfounded by the Jinan city court, as digital assets do not have legal standing in China. On Sunday, Shandong’s High Court confirmed this decision, stating that investing in or trading crypto is not protected by law.
BTC is argued to be digital property by a Chinese District Court
This decision contradicts a recent document published by China’s District Court on protecting visible and intangible virtual property. In a recent piece, the Shanghai Minhang Court argued that Bitcoin is a digital property. BTC is a virtual asset that is disposable, exchangeable, and exclusive, according to the article.
The court emphasizes the high exchange value of Bitcoin
The Shanghai Minhang District Court cited Bitcoin’s high exchange value as a rationale for its virtual property status. This means that any resources, including property and energy, exchanged for BTC have a higher exchange value, demonstrating its irrefutable status as virtual property. According to the Shanghai Minhang Court, BTC is also a virtual product because it is acquired through lawful labor. It’s also disposable, interchangeable, and one-of-a-kind. Therefore, according to the court, BTC gains the status of a virtual commodity as well as the status of virtual property.
The Shanghai Minhang District Court, on the other hand, emphasized BTC’s lack of regulatory footing. While Bitcoin has a high exchange valuation, it lacks monetary qualities, making it unsuitable for use as a currency in the country. The lack of legal compensation and obligation, according to the paper, is the cause for BTC’s unregistered position as a market currency.