A Chinese high-court has released a public statement in which it claims that trading or investing cryptocurrency is not covered by law. It cites the lack of legal status for cryptocurrency assets in China.
Chinese court declares crypto not protected by law
According to the South China Morning Post, a public statement was issued by the Shandong Province’s high court on Sunday, stating that cryptocurrency is not protected under law. According to the press release
The law does not protect cryptocurrency trading or investing.
This conclusion was reached after the court considered a case in that the plaintiff had invested 70,000yuan ($10,799) in crypto tokens. These tokens were approved by his friends in 2017. The accounts were closed after the People’s Bank of China (PBOC) reiterated its ban against financial institutions processing cryptocurrency transactions.
An intermediate court in Jinan in Shandong’s capital ruled that the plaintiff’s fraud claim was invalid because the crypto assets were not legal in China. The court granted the complainant leave to appeal, but it upheld its decision in March.
This ruling is contrary to several previous rulings by Chinese courts. In May last year, the Shanghai No.1 Intermediate People’s Court ruled bitcoin was a legally-protected digital asset. The Shenzhen Futian District People’s Court, Guangdong Province, had declared legal ownership of the cryptocurrency with economic value a month earlier.
China has intensified its efforts to crackdown on crypto activity, including closing down mining farms. Last week, 11 companies involved with crypto business were shut down in Shenzhen by the PBOC branch.
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