The
high court of Shandong province ruled Wednesday that investing in
cryptocurrency is not protected by Chinese law, in a decision on a contract
dispute case that goes back to 2017. Last week, a Shanghai court issued a
decision that was in direct opposition to this one.
• The case has the potential to establish a legal precedent for crypto trading in the nation, which is already under scrutiny.
• Other Chinese courts, on the other hand, have ruled that digital assets are protected as virtual property or commodities.
•
Last week, a court in Shanghai's more financially liberalized district ruled
that cryptocurrency is protected as virtual property, while China's Supreme
Court advocated for stronger safeguards for virtual currencies last year.
•
The plaintiff in the Shandong case, Ma, entrusted the three defendants with
70,000 yuan ($10,500 at the time) to invest in tokens in 2017. Soon after,
Chinese authorities outlawed yuan-based crypto trading, and Ma's funds were
frozen in the trading account.
•
The Shandong high court said that notifications from the People's Bank of
China, as well as securities, banking, cyberspace, and other authorities,
stated that investment in crypto tokens is unlawful at the time. Because the
plaintiff broke the law, he couldn't obtain his money back from the defendants
under Chinese civil law.
• The Shandong court agreed with earlier court decisions that crypto is not a legal money issued by a monetary authority and therefore lacks the legal standing of conventional currencies.
0 Comments