The Shanghai High People’s Court has issued a document stating that Bitcoin is subject to proprietary rights laws and regulations. Such conclusion came in connection with a lawsuit filed in district court in October 2020 involving the recovery of a 1 Bitcoin (BTC) loan. The trial court recognized that Bitcoin has value, scarcity, and availability, and is therefore subject to property rights and meets the definition of virtual property.
According to the Sina website, Shanghai Baoshan District People’s Court ruled in favor of plaintiff Cheng Mou, ordering defendant Shi Moumou to return the Bitcoin. When the defendant failed to do so, the case was sent back to court, which held a mediation in May 2021. Since the defendant no longer had possession of the Bitcoin, the parties agreed that the defendant would provide compensation at a discount to the value of the Bitcoin at the time of the loan.
A current value for the borrowed Bitcoin could not be established, as its trading is prohibited in China. The case was also complicated by the limitations of the investigation and execution judicial authorities, which cannot make inquiries about the virtual property, according to the publication.
China began cracking down on cryptocurrency trading and stepped up its efforts in 2017. The government was gradually disconnecting cryptocurrency miners from the power grid and the KV against the cryptocurrency markets. Since then, he has turned his attention to “illegal financial activities related to NFTs.”
At the same time, China has taken the lead worldwide in introducing a central bank digital currency (CBDC). The digital yuan saw its first large-scale use, despite restrictions due to the Covid pandemic, at the Beijing Winter Olympics.
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