Chinese Court Recognizes Bitcoin as an Asset Protected by the Law

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The Shanghai District Court has ruled in favor of a Bitcoin owner and awarded him a compensation. The court has acknowledged Bitcoin is subject to property rights, rules and laws, and issued a document confirming that.

The ruling follows a lawsuit filed in October 2020 in which the prosecutor sought to collect a 1 BTC credit. The Shanghai People’s Supreme Court found that 1 BTC has value, so the creditor is legally entitled to reimbursement.

The case is historic, considering that China had previously imposed an official ban on cryptocurrencies, citing fears of destabilizing the country’s financial sector.

The court ruled in favor of the plaintiff Cheng Mou, and the defendant Shi Moumou is now obligated to return the BTC. However, this will not be easy because cryptocurrency transactions are no longer considered legal in China. In this regard, the affected parties have agreed the defendant will pay compensation at a reduced price of BTC.