Bitcoin was just recognized as a legal ‘virtual property’ in China. At the hearing of the first property infringement case in China’s Hangzhou Internet Court, Bitcoin was recognized as “virtual property.”According to the court’s order,
Bitcoin holds the attributes as property – valuable, scarce and disposable. We should recognize it as a virtual property.
It was first brought into light by Dowey Wan, Crypto-analyst and Trader who pointed out that,
This case is a major milestone that manifested BITCOIN IS ACTUALLY LEGAL in China so please STFUDup on Bitcoin is illegal in China from now on
The case was between the plaintiff Wu’s and the defendant’s Shanghai technology company and the defendant Taobao. The plaintiff accused the defendant of network infringement liability. While the court denied all of the plaintiff’s claim, it was a massive win for Bitcoin in China.
This is because as Bitcoin is recognized as a virtual asset with real value, from now on, it will be protected by the Civil laws in China. These would relate to financial theft, inclusion in contract laws, and other types of disputes like electricity theft. Wan tweeted,
According to “The General Civil Law”, virtual property is legally protected by laws of People’s Republic of China”
Reportedly, it is not because of a recent implementation of any new legislation. It has been for a very long time. According to Xiao Wei, a director of the Bank of China Law Society; In 2013, China clearly defined the legal attributes of Bitcoin itself: specific virtual goods, that is, the status of recognition of its “property.”
Bitcoin’s Sudden Rise
This is big positive news for Bitcoin and Chinese investors who have been living in uncertainty. Bitcoin [BTC] shot up a couple of hours after the story started breaking in the Chinese media. Wan also pointed out this fact, she tweeted,
I was browsing Weibo and Wechat on sentiment around the sharp Bitcoin rally, instead of Libra, folks attributed the rally to the case above then I realized it’s indeed a big milestone
At 14: 30 hours yesterday, Bitcoin rose from $9400 to $10,300. The rise came as a surprise for most traders, and they suspected a bull trap.
However, if the buying pressure catches on in China, the FOMO could ensue again. Nevertheless, the price seems to be holding around $10,500 at the moment. Moreover, the Chinese investors and miners who are already engaging with cryptocurrencies are probably bought in already.
Moreover, Dovey Wan also noted that while holding Bitcoin is alright, at the moment, it does not extend to allowing trading on Exchanges.