Chinese Court Rules Bitcoin in category of Virtual Asset

The Shanghai High People's Court has ruled that Bitcoin falls into the category of virtual asset and is under the protection of Chinese law despite the ban on cryptocurrency transactions. The court also said in a ruling that Bitcoin has economic value.

The official WeChat of the court posted a notice last week saying, “In the actual trial practice, the People’s court has formed a unified opinion on the legal position of bitcoin and identified it as virtual property.”

The embassy further added, reiterated the status of Bitcoin as an asset of certain economic value and compliant with the characteristics of ownership, and the legal rules of property rights apply for protection.

The court ruling concerns a case involving Cheng Mou. Mu filed a proceeding in the Baoshan District People's Court in Shanghai on October 10, 2020. He asked Shi Moumou to return his Bitcoin.

The trial ended on February 23, 2021, and the court ruled that Chend must recover BTC from Shi within 10 days of the ruling. Shi refused to pay Bitcoin, and Chen then went to the district court to seek relief. After that, mediation between the two parties was arranged by the Baoshan Court.