Chinese Court Recognizes Bitcoin as Valuable Digital Asset

According to reports, the No. 2 Intermediate People’s Court in Shanghai, China, has acknowledged Bitcoin as a unique, non-replicable digital asset with inherent scarcity and value.

The Chinese court published a report on the development of Internet technologies on September 25. According to the report, the evolution of Internet technology has made digital currencies such as Bitcoin distinctive and irreplicable.

The report asserts that Bitcoin stands apart from other digital assets in a sea of digital currency. The report also illuminates Bitcoin’s unique characteristics, such as its scarcity and property attributes.

According to the report, Bitcoin possesses important currency characteristics such as scalability, simplicity of circulation, storage, and payment.

Bitcoin continues to be utilized globally despite its decentralized nature and lack of administration by a central authority.

The most recent judicial report recognizing Bitcoin and its attributes as an asset class lends legitimacy to Bitcoin and other digital currencies in China.

Despite a blanket ban on cryptocurrencies in China, local Chinese courts have given significant weight to arguments defining bitcoins as personal property.

Despite the Chinese government’s anti-Bitcoin stance, one of Shanghai’s most prestigious tribunals has recently acknowledged the cryptocurrency.

In 2021, China prohibited all cryptocurrency-related activities, including Bitcoin mining. Nonetheless, several Chinese courts have recognized Bitcoin and other digital assets as legally protected property.

As reported on September 1st, a Chinese People’s Court issued a report assessing the legality of virtual assets and analyzing their criminal law characteristics.

According to the report, digital assets are classified as legal property and are therefore protected by law.