Bitcoin recognized as unique digital asset after Chinese court report.
The Shanghai Second Intermediate People's Court in China has published a report titled "Legal Attributes and Judicial Disposal of Digital Currency" on September 25th, which highlights the unique nature of Bitcoin as a virtual asset. The report discusses the controversy surrounding digital data and currency in judicial proceedings and how it differs from traditional assets. Bitcoin recognized as unique digital asset after Chinese court report.
According to the report, Bitcoin is a non-replicable cryptocurrency that stands out from other digital assets due to its scarcity, inherent value to holders, ease of circulation, and storage. This decision was reached based on several attributes unique to Bitcoin.
It is worth noting that the Chinese government issued a blanket ban on cryptocurrencies in 2021, creating a dilemma for declarations like these coming out of Chinese courts. However, the court's decision is in line with previous arguments made by Chinese courts in support of Bitcoin as property based on its value and use cases.
Recently, a People's Court in China released a report on the legality of digital assets, stating that they are still protected by law and considered legal property. The court also provided guidance on how to carry out criminal and civil proceedings involving virtual assets, stating that in some cases, money involved in criminal and civil cases cannot be confiscated and should be tried and prosecuted separately.
The Shanghai court's decision comes at a time when the region is experimenting with crypto assets and web3, despite mainland China's opposition to private cryptocurrencies.
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Bitcoin recognized as unique digital asset after Chinese court report. Cryptocurrency and the Dilemma of Justice.
The court report highlighted the varying interpretations of the law in relation to cryptocurrencies due to their unique nature. The report presented two cases to illustrate this point. In the first case, Tether worth 12 million yuan was stolen and used to generate a profit of 900,000 yuan, which was considered theft by the courts. In the second case, the defendant was accused of stealing Bitcoin but was found guilty of illegally obtaining computer data. The report noted that courts face challenges in dealing with digital assets, including seizure methods and transfer processes. Unlike traditional assets and physical property, virtual assets may require the defendant's cooperation to be seized, making it a bilateral process. Some analysts suggest that recent developments around web3 in Shanghai may be a test net for mainland China's web3 plans.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.