Shanghai Court Clarifies Legality Of Cryptocurrency Ownership In China
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A court in Shanghai has clarified that owning cryptocurrency is allowed in China. This announcement comes as Bitcoin prices approach the $100,000 mark, sparking interest among global investors. Enthusiasts are now watching to see if Bitcoin will cross this key milestone in the coming days.
The statement offers clarity for individual cryptocurrency holders during a time of strict controls on crypto-related activities in China. Sun Jie, a judge at the Shanghai Songjiang People’s Court, shared insights through an article on the Shanghai High People’s Court’s WeChat account.
China Clarifies Personal Cryptocurrency Ownership Amid Ongoing Restrictions
Sun explained that owning cryptocurrency is not banned for individuals in China. However, he pointed out that business activities involving cryptocurrencies remain restricted to safeguard financial stability.
Sun described cryptocurrencies as virtual commodities with property attributes. He explained that while speculative trading disrupts the economy and is tightly regulated, personal ownership does not violate existing laws.
This position was highlighted in a legal case involving a dispute over an initial coin offering. The court categorized the activity as illicit financing but reaffirmed that cryptocurrencies themselves are not illegal.
Bitcoin’s recent price surge has added to global attention on the cryptocurrency market. This week, Bitcoin crossed $99,000, supported by news of former U.S. President Donald Trump’s re-election and his promises to support cryptocurrency.
Analysts reported that the H4 chart shows Bitcoin following a trend line, with its price nearing $100,000. If the price consolidates, support at the $98,000 level may encourage buyers, pushing the price higher.
China has had restrictions on cryptocurrency since 2017. These began with bans on initial coin offerings and crypto exchanges.
China Maintains Cautious Stance On Cryptocurrency
In 2021, authorities expanded these measures to include bans on Bitcoin mining and other crypto-related businesses. Despite this, courts in China have sometimes ruled that cryptocurrencies can be treated as personal property under existing laws.
Separately, the Central Commission for Discipline Inspection revealed that Yao Qian, a former official at the People’s Bank of China, is under investigation. The case involves allegations of bribery linked to cryptocurrency activities.
Yao had previously supported cryptocurrency, and this development may hinder progress for crypto supporters in the country.
Despite this legal clarification on ownership, China’s overall approach to the cryptocurrency industry remains cautious.
Experts, including Zhu Guangyao, a former finance vice-minister, have suggested opening the market further to help China stay competitive in the global digital economy. However, for now, the government continues to focus on controlling activities that could disrupt financial stability.
