Bitcoin gains legal recognition in Shanghai despite China's crypto ban
The Shanghai No. 2 Intermediate People’s Court has officially recognized Bitcoin as a unique digital currency, according to a recent announcement by Tron network founder Justin Sun. Sun shared this development on social media, emphasizing the court's acknowledgment of Bitcoin's scarcity and inherent value.
In September 2022, a lawyer argued that despite China's national crypto ban, the country's law could protect crypto holders in theft or breach cases. Supporting this perspective, a Shanghai court recognized Bitcoin as virtual property in May 2022, thereby strengthening legal rights for cryptocurrency in China.
Despite China's official stance against cryptocurrencies, the Shanghai Second Intermediate People’s Court recently published an article acknowledging Bitcoin's legitimacy. The article highlighted Bitcoin's uniqueness and non-replicability, distinguishing it from other virtual currencies such as Q coins. The author also noted that despite regulatory ambiguity, courts face difficulty ignoring the monetary and property attributes of digital currencies during judicial proceedings.
The article further elaborated on Bitcoin's property attribute, noting its relative scarcity and widespread recognition. Despite its decentralized nature and lack of central authority management, Bitcoin still possesses major functions of currency such as scale, circulation means, storage means, payment means, and global usage. The article emphasized that Bitcoin can be obtained through labor production (mining), inheritance, or buying and selling.
This legal opinion provides additional legitimacy to Bitcoin and other digital currencies in China. It suggests that courts might be more inclined to consider arguments classifying cryptocurrencies as personal properties.
In related news, Sun's known cryptocurrency wallets have seen a significant increase in value over the past month. Data from Arkham Intelligence revealed that from August 19 to September 19, the value of cryptocurrencies in Sun's wallets increased from around $733 million to over $1.1 billion. His largest holding is Wrapped Staked Ethereum (WSTETH), worth about $315 million, marking the volatile nature of the crypto market.
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