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Although it is possible to have Bitcoin, its possession is declared “risky.”
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A judge ruled on an old ICO lawsuit.
Amid the record rise in the price of bitcoin (BTC), a court in China issued an opinion stating that personal ownership of cryptocurrencies is not against the country’s laws.
“Cryptocurrencies are a commodity and it is legal to own them, but you cannot use them,” recommended Sun Jie, judge of the Songjiang People’s Court in Shanghai, when she posted on the Chinese platform WeChat. With his phrase he opened an explicit legal door for holding cryptocurrencies in the Asian giant.
According toBlockchain/article/3287415/shanghai-court-says-crypto-ownership-legal-under-china-law-amid-bitcoin-price-surge”> inform the South China Morning Post newspaper, the recommendation was made when ruling on a commercial dispute dating back to 2017, referring to differences related to aEthereum-defi-inversiones/#:~:text=Una%20Oferta%20Inicial%20de%20Moneda%20(ICO)%20es%20un%20mecanismo%20de,el%20%C3%A1mbito%20de%20las%20criptomonedas.” target=”_blank” rel=”noreferrer noopener”> Initial Coin Offering (ICO). However, the judge’s opinion shed light on the complex legal status of cryptocurrencies in China.
Sun Jie wrote that digital currency does not have the status of fiat currency, but is rather a virtual commodity with “property attributes.”
While it is not illegal for individuals to simply own virtual currencies, commercial entities cannot engage in investment transactions with those assets or even issue tokens on their own.
Judge Sun Jie
The lawsuit in question was due to a claim made by an investment firm against a company that had committed to issuing a token after the launch of the ICO. This, shortly before the ban on these activities in China. Now the court determines that Both companies have engaged in illegal activities and ordered the return of 250,000 yuan.
And although the judge recognized the possession of bitcoin as something valid, he continued his talk with a long warning on the possible “evils” of having cryptocurrencies. This, ignoring its properties as a refuge of value, which are currently being vindicated when currencies like BTC are approaching USD 100,000, at the time of writing this note.
Following the arguments of the Chinese authoritiesSun Jie commented that bitcoin trading Not only does it “disrupt the economic and financial order, but it can also become a payment and settlement tool for illegal and criminal activities, encouraging money laundering, illegal fundraising, fraud, pyramid schemes and other illegal activities.” and criminal.
“Blindly engaging in transactions with virtual currencies can be risky,” the court concluded, citing Article 153 of the Civil Code of the People’s Republic of China. “Because people and companies may not have the full protection of the law.”
They are mentioned like this a series of prohibitions which were produced following this chronology:
- In 2013, banks were required not to allow transactions linked to cryptocurrencies.
- In 2014, the sale of bitcoin was banned.
- In 2017, China ordered the closure of Cryptocurrency exchanges.
- In 2018, foreign cryptocurrency trading platforms were blocked.
- In 2021 the People’s Bank of China and 10 government agencies joined forces to ban the trade and restrict Mining.
In this way, it is understood that the possession of cryptocurrencies was never prohibited, as stated in the judge’s ruling. There was also no explicit ban on Bitcoin mining. As researcher Daniel Batten clarified a few months ago, what occurred It was a suspension of mining activities.
Some of these restrictions may be lifted in the not too distant future. As CriptoNoticias has reported, with Donald Trump in the presidency of the United States, The Chinese government is expected to wants to include cryptocurrencies in the trade war that is waged against the northern country.
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