China: Bitcoin protected by law due to its economic value
After the first transaction in Bitcoin on January 3, 2009, the world was relatively slow in accepting the new form of payment into everyday life. China was one of the first major countries that essentially helped cryptocurrency to not only get off the ground but also to develop into something a lot bigger than just the innovative technology. Currently, China is also the country where most of crypto-related litigations take place. Cases involving digital currency are typically handled in China’s arbitration courts, and are widely reported worldwide.
On October 25, in a recent case based on a dispute over equity transfer, Shenzhen International Court of Arbitration has ruled that “digital assets of Bitcoin are legally protected due to their economic value.” This could be another winning milestone for cryptocurrency, since the Chinese authorities have officially described it as ‘property,’ which therefore has to be protected by the same state laws.
However, financial analysts still recommend staying cautious in terms of the future of crypto in China, considering recent actions the Chinese government took in anti-cryptocurrency trading efforts, which included issuing public warnings regarding ICOs, blocking 124 exchanges and banning crypto media outlets in late 2017. The recent Shenzhen International Court of Arbitration ruling came out as a surprising green light to confirm that cryptocurrency is not banned in China, however, there undoubtedly have to be more government efforts in order to make this country attractive for the crypto industry again.