Shanghai Second Intermediate People’s Court known Bitcoin as a unique and non-copyable digital asset, considering its scarcity and intrinsic value.
On September 25, the Chinese court published a report discussing the development of Internet technologies. The report states that with the development of Internet technology, digital currencies such as Bitcoin stand out as unique and uncopyable. Among the endless number of virtual currencies, the report highlights: Bitcoin is different and unique compared to other digital assets.
The report also sheds light on some of Bitcoin’s unique features, including its scarcity and ownership characteristics, and highlights how it inherits the key characteristics of a currency. There scalability, ease of movement, storage and financial transfer. Despite its decentralized structure and lack of a central governing authority, Bitcoin continues to be used on a global scale.
The latest forensic report recognizing Bitcoin and its characteristics as an asset class gives BTC and other digital currencies greater legitimacy in China. Despite the general ban on cryptocurrencies in the country, Legal arguments in support of defining Bitcoin as personal property have received significant support from local Chinese courts.
The latest recognition by a major court in Shanghai comes despite Beijing’s hostile attitude towards cryptocurrency. In 2021, China imposed a blanket ban on all activities related to this asset class, including mining. However, over the years, many Chinese courts have recognized BTC and other digital assets as legal property protected by law.
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As Cointelegraph reported earlier this month, the People’s Court of China published a report assessing the legality of virtual assets and analyzing their criminal law qualifications. The report emphasizes that: Digital assets constitute legal property and are therefore covered by law.
Translation by Walter Rizzo