Judge Sun Jie of the People’s Court of Songjiang District in Shanghai has made a key ruling: cryptocurrency is a legal commodity with property rights in China. This decision comes from a 2017 business dispute where a company failed to issue a promised token, resulting in a partial refund. Judge Sun confirmed that individuals can legally own virtual currencies, but businesses are not allowed to invest in or issue tokens.
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Recently, there have been rumors that China may lift its crypto ban, and this court ruling adds fuel to the speculation. But what exactly does this mean for the future of cryptocurrency in China?
Judge Sun’s ruling makes it clear that while individuals can own virtual currencies, commercial entities are prohibited from investing in them or issuing tokens. She also warned about the risks associated with cryptocurrency, including market speculation, potential financial disruptions, and its misuse in activities like money laundering and fraud.
However, despite China’s strict control over crypto exchanges and transactions since 2017, personal ownership of digital assets has never been banned, keeping them legally recognized as personal property under Chinese law.
Although ownership is allowed, China’s regulations on cryptocurrency remain confusing. A recent bribery case involving Yao Qian, a former director at the People’s Bank of China’s digital currency institute, highlights these contradictions.
While individuals are free to own cryptocurrency, the government continues to impose heavy restrictions on the crypto industry, showing no signs of easing its tight grip on exchanges and commercial activities.
Experts like Zhu Guangyao, former vice minister of finance, argue that cryptocurrency is essential for the digital economy and that China must adjust its policies to stay competitive. This is especially important as the U.S. plans to use Bitcoin as part of its strategic reserves under President-elect Donald Trump.
While the road ahead for cryptocurrency in China remains uncertain, one thing is clear: the digital revolution is impossible to ignore.
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