The Shanghai High People’s Court has issued a document stating that Bitcoin is subject to property laws and regulations. The findings were made in connection with a lawsuit involving the withdrawal of a 1 Bitcoin (BTC) loan brought to the District Court in October 2020. A lower court has found that Bitcoin is subject to property rights and meets the definition of a virtual asset because of its value, scarcity, and disposition.
According to Sina The People’s Court of Baoshan District in Shanghai ruled in favor of plaintiff Cheng Mou and ordered the defendant Shi Moumou to return his bitcoins. When the defendants did not do so, the case returned to court and opened for arbitration in May 2021. Since the defendant no longer owned Bitcoin, the parties agreed to offer the defendant compensation at a discount from its value. Bitcoin at the time of the loan.
Since trading is banned in China, we cannot establish a present value for the loaned bitcoin. According to the publication, the case was complicated by the limitations of court investigations and enforcement agencies that were unable to investigate virtual property.
China started cracking down on cryptocurrency trading in 2017 and stepped up its efforts. The government has gradually blocked cryptocurrency miners from the power grid and KV to the cryptocurrency market. Since then, attention has been paid to ‘NFT-related illegal financial activities’.
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At the same time, China is a global leader in the adoption of central bank digital currencies (CBDCs). The digital yuan was widely used for the first time at the Beijing Winter Olympics despite coronavirus restrictions.