The Shanghai High People's Court declared that Bitcoin has a "certain economic worth" and is a virtual asset protected by Chinese law, adding to the country's tumultuous cryptocurrency scene.
According to Bitcoin.com, the court stated that Bitcoin has some economic worth and possesses the relevant property features in a notification posted on the WeChat messaging app.
Given that China has banned cryptocurrencies like Bitcoin, alleging a threat to the country's financial sector stability, the decision is significant.
The ruling reads,
“In actual trial practice, the People’s Court has formed a unified opinion on the legal position of bitcoin, and identified it as virtual property <…> Bitcoin has a certain economic value and according to the attributes of property, the rule of law of property rights is applied for protection.”
The court's directive will serve as a key point of reference for Bitcoin-related civil cases in the Shanghai area, according to Liu Yang, a Beijing lawyer.
Given the case decision that Bitcoin should be given legal protection, how crypto players and the government respond to the mandate will be closely watched.
The decision stems from a case filed in October 2020 by Cheng Mou with the Shanghai Baoshan District People's Court, in which he demanded that one Shi Moumou restore his single Bitcoin.