The latest ruling from a top court in Shanghai has declared Bitcoin as a legal status as personal property. Shanghai is considered the epicenter of trade and commerce in China. The city known for its financial prowess and dominance has recently created a new wave of resistance for the cryptocurrency proponents in the region.
China’s Ban on Cryptocurrencies
Setting a new example, the top court of Shanghai has issued an order in favor of Bitcoin. It is worth noting that last year, the Chinese government effectively put a nationwide ban on all activities relating to cryptocurrencies. In September 2020, the government of China started by blacklisting Bitcoin miners and went on to remove all civil liberties about crypto trading, holding, promoting, or advertising.
The top court in Shanghai recently issued a judgment over a case related to cryptocurrency trading. The civil case talked about two Chinese citizens who reached the court to settle the matter of one Bitcoin ownership dispute. The presiding judge on the case claimed before the conclusion that Bitcoin is a virtual property. The dispute took an interesting turn when the plaintiff claimed that the defendant owes him one Bitcoin.
Meanwhile, the defendant maintained that he does not possess any Bitcoin in his ownership. Citing the problem with tracing financial records due to the decentralized properties of Bitcoin, the court decreed that Bitcoin hosts value scarcity properties that include the token under the object of rights and qualify it as virtual property.
Bashon District’s Assistant Judge, Qian Zhengxiao recently told the media that the court has to take the route considering that there were no other options to ensure the rightful recovery of the defaulted Bitcoin property. He further explained that the court could issue a personal decree that allows the concerned parties to follow through with the standard legal procedures.
He also claimed that Bitcoin is not an irreplaceable entity. Zhengxiao added that there are two options for legal execution in this case. As per his legal opinion, purchase and delivery orders are one example while the legal supervisors can also look at the process of discounted compensation to settle the matter. 127 Article in the Civil Code of the Chinese constitution grants legal protection to the people for holding digital assets properties such as Bitcoin.