Today, many crypto traders and enthusiasts awoke to news of an arbitration court in China ruling that Bitcoin (BTC) should be legally protected as a property with economic values. The court was resolving a dispute that centered on the following lot of cryptocurrencies: 20 BTC, 50 Bitcoin Cash (BCH) and 13 Bitcoin Diamond (BCD).
According to the plaintiff, the coins were worth around $500,000 and the defendant had reneged on an agreement to trade and manage the assets on their behalf. The defendant had other ideas of the situation. S/he had said that the currently standing ban on cryptocurrency trading by the People’s Bank of China (PBoC) had nullified the agreement. However, the courts ruled as follows:
Bitcoin has the nature of a property, which can be owned and controlled by parties, and is able to provide economic values and benefits.
The court at the same time, reminded everyone at the ruling that Bitcoin is not legal tender.
So, What Next?
Further analyzing the verdict of he courts, we can conclude that there are indeed loopholes in the current ban on crypto trading in the People’s Republic of China. It simply prevents trading via online platforms. The ban does not prevent individuals from owning or exchanging BTC on a peer-to-peer level.
What Does This All Mean
From a layman’s perspective, this means the plaintiff is liable to the terms of the agreement outlined before the cryptocurrency ban took effect in the country. Secondly, Bitcoin can be possessed and protected as property but is not legal tender.
As with property – such as a pair of shoes, a TV or phone – it can be gifted or exchanged on a peer-to-peer level similar to the traditional barter trade. We must remember that money as legal tender, simply means that the governing entity has rubber stamped it as being legitimate according to the laws of the land.
By using logic, we can conclude that owning and trading crypto on a peer-to-peer level is not illegal in China. If the citizens of China interpret the ruling the way we just did, then they might start seeking the digital assets once again. Unconfirmed reports indicate that online traders are still operating in the country.
The ruling could signal a revival of interest in digital assets in China that could have a ripple effect on the global crypto markets. Crypto demand might go up as a result. With demand, comes the obvious increment in value of the digital assets.
Only time will tell if this will become a reality.
Another thing to note, is that this ruling legitimizes Bitcoin mining in China.
What are your thoughts on the recent ruling on Bitcoin in China? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any opinion herein is purely the author’s and does not represent the opinion of Crypto Crimson or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.