Recently, the Chinese government continues to implement new crackdowns against cryptocurrencies. It is for this reason that the decision of one of the Chinese courts surprised more than one. A court in China has indeed said that crypto trading is now possible. However, it states that the use of crypto as a substitute for fiat currency is prohibited.
Cryptocurrencies are legal in China, but not for payment
Bitcoin (BTC) has been completely banned in China
It all started in 2019 when China officially banned cryptocurrency trading on its territory. However, this restriction did not prevent this trade from continuing online through foreign stock exchanges.
In May 2021, cryptocurrency mining also became illegal in China. In June 2021, China’s central bank banned financial institutions, payment companies and online companies from facilitating cryptocurrency trading. After this announcement, online exchanges of virtual currencies abroad were banned. They essentially allowed services to be provided to national residents
In short, the Chinese state has not allowed foreign platforms to provide services to China-based investors. Result: all crypto transactions were deemed illegal. The People’s Bank of China has even indicated that it will strengthen monitoring of transactions involving cryptocurrencies.
A dispute that could change everything
As reported by the site Forkast, a court in China issued the decision to protect virtual assets after a dispute regarding the refund of Litecoin (by banning the trade). The court relied on the following: “There are no laws, by-laws or department rules that deny the protection of cryptocurrency itself as virtual property. »
By protecting cryptocurrencies, China is taking a small step to rethink this virtual asset. It’s true, this is just a legal decision from a court. But it could be a factor to push the state to review cryptocurrency.
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My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it’s a universe I’m very interested in. And the topics covered in the platform give me the opportunity to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!