The Shanghai High Court of Appeals has issued a document claiming that bitcoin is subject to property rights laws and regulations. This decision was made in a lawsuit filed in a district court in October 2020 for the recovery of a 1 bitcoin (BTC) loan. The trial court recognized that bitcoin has value, scarcity and availability, so it is subject to property rights and meets the definition of virtual property.
According to the Sina website, the Shanghai District People’s Court ruled Baoshan in favor of plaintiff Cheng Mou, ordering defendant Shi Moumou to return the bitcoin. Because the defendant failed to comply, the case was returned to the court, which settled mediation in May 2021. As the bitcoins were no longer in the defendant’s possession, the parties agreed that the defendant Compensation available at a discount compared to. the value of bitcoins at the time of the loan.
No current value could be established for the borrowed bitcoin since trading is prohibited in China. The case was also complicated by the limits of the court’s investigating and executing authorities, which cannot carry out investigations on virtual goods, according to the publication.
China began to crack down on cryptocurrency trading and intensified its efforts in 2017. The government gradually disconnected cryptocurrency miners from the power grid and took action against cryptocurrency markets. He has since drawn attention to “illegal financial activities related to NFT”.
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At the same time, China is a world leader in the introduction of central bank digital currency (CBDC). The digital yuan saw its first widespread use, despite Covid ‘s restrictions, during the Winter Olympics in Beijing.