In a step toward regulatory clarity for Bitcoin holders in China, a Shanghai court has issued an opinion stating that personal ownership of digital assets is not illegal Chinese law.
Personal Bitcoin ownership legal
The opinion, articulated by Sun Jie, a judge at the Shanghai Songjiang People’s Court, was published on the official WeChat account of the Shanghai High People’s Court.
Sun emphasized that while individuals are allowed to own cryptocurrencies, business entities in China are still prohibited from engaging in cryptocurrency investments or token issuance without regulatory approval.
This clarification was part of the court’s review of a lawsuit involving disputes between two companies over a first coin offering (ICO), which is considered illegal financing in China.
China has long viewed crypto assets as a potential threat to financial stability, leading to strict regulatory measures. In 2017, the government banned ICOs and closed crypto exchanges, and in 2021 it intensified its crackdown by banning Bitcoin mining and declaring crypto-related business activities illegal.
Despite this background, Sun noted that cryptocurrencies are considered virtual goods with proprietary features, which are not prohibited for personal possession.
“The law and regulation maintains a crackdown on speculative activities in cryptocurrency trading,” Sun said, underscoring the government’s approach to the sector.
This sentiment is consistent with Beijing’s broader strategy to avoid “disruptions” to the economic and financial order, especially in light of concerns about illegal activities powered by cryptocurrencies.
Regulatory tensions in China
In a related incident, Yao Qian, a former director of the People’s Bank of China’s digital currency research institute, was involved in a bribery case involving cryptocurrency, highlighting the complexities and contradictions within the Chinese economy. regulatory landscape.
While the recent opinion provides clarity, it is an open secret among industry insiders that individual cryptocurrency ownership is tolerated. Certain courts have previously ruled that cryptocurrencies should be treated as property protected under existing legal frameworks.
However, there is still no indication that Beijing plans to relax its strict regulations on the Chinese economy cryptocurrency industry, despite calls from experts for a more open market approach.
Zhu Guangyao, former vice minister of finance, noted in September that cryptocurrencies are “crucial” for the digital economy. He suggested that China must adapt to remain competitive as the US embraces the industry, especially with newly elected President Donald Trump and his plans to use Bitcoin as a strategic reserve for the country in his incoming administration.
At the time of writing, the largest cryptocurrency on the market has hit a new all-time high of $94,730. Bitcoin is up 2.5% over the past 24 hours, after consolidating between $89,000 and $92,000 over the weekend and Monday.
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