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Chinese Court Considers Virtual Assets as Legal Property

A Chinese court ruled that a virtual currency shouldn’t be treated as illegal immediately under the nation's legal framework.

A Chinese court has deemed virtual assets to be legal property.
Credit: Shutterstock, Copyright: 2021 Ink Drop/Shutterstock.

BEIJING – On September 1, the People’s Court of China ruled that virtual assets shouldn’t be classified as illegal. The court argued that the virtual assets have economic attributes, and, according to the nation’s current policy framework, they should be classified as legal properties.


The People’s Court in China behave as independent judicial power in each state to reflect the people’s point of view. They don’t have to worry about interference from Administrative entities and other governmental branches. The Court who made the ruling in question is located in the southeastern Fujian province.


Significance of the Virtual Assets Ruling


China has been known for its anti-crypto stance for years. The country prohibited banks from dealing with Bitcoin transactions in 2013. Then, it banned Initial Coin Offerings (ICOs) in 2017, crypto mining in 2019, and crypto trading in 2021.


Despite all the restrictions and bans, the ruling of the People’s Court in Fujian hints that China’s current regulatory framework is crypto-friendly. Moreover, this is not the only ruling that went against China’s take on crypto. In September 2022, a court in Beijing also declared that no laws, administrative regulation, or departmental rule deny the recognition of virtual currencies as a form of virtual property.


Is China Secretly Crypto-Friendly?


Even though the country implemented many precautions to prevent its citizens from dealing with crypto, it is not turning its back on blockchain completely. The country has been making significant efforts to harness the potential of Blockchain technology.


China published the national blockchain standards to guide industry development and spent considerable effort to implement the Digital Yuan, which is the world’s first true Central Bank Digital Currency (CBDC). The country also motivates its regions to advance in blockchain.


Moreover, it was revealed that China has been holding on to the crypto it had confiscated from scams and illicit actors. According to numbers from November 2022, China holds over 194,000 BTC, 833,000 ETH, and several other assets.

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