Shanghai Court Declared Bitcoin As Legal Virtual Property

• The property rights protection will apply to Bitcoin under Chinese law.

• In the previous 24 hours Bitcoin has dropped 13.48%

China is one of the largest crypto markets but it had a cold war with cryptocurrency. The result of this In September 2021, The People’s Bank of China warned that digital currency related activities are illegal and cryptocurrency users are considered as criminals. The government is seriously concerned about the safety of people’s assets.

However, considering China’s ban on crypto trading the Shanghai High court announced that property rights protection will apply to Bitcoin under Chinese law.

BREAKING: ?? Shanghai High People’s Court has declared #Bitcoin is a legal virtual property protected under Chinese law.

— Watcher.Guru (@WatcherGuru) May 12, 2022

The Shanghai High Court issued a statement on its official WeChat channel confirming that Bitcoin is considered as virtual property because it has economic value and privilege. 

In the actual trial practice, the People’s Court has formed a unified opinion on the legal position of Bitcoin, and identified it as a virtual property.

This announcement will be a massive relief to those who have been suffering in the crypto market’s recent downturn. The surprise is that the government has yet to withdraw the prohibition on cryptocurrency trading.

Where It Started 

On Oct 2020, Mr. Cheng Mou, filed a petition with the Shanghai Baoshan District Court demanding that Mr. Shi Moumou has to return his one bitcoin.

Following that in Feb 2021, the court decided that Shi must repay Cheng his bitcoin within 10 days of the judgement but Shi refused to pay it back. Cheng sought further remedy through the local judicial system so the Baoshan court planned to arrange mediation between the two parties. But both of them refused to close the case and the high court was urged to be involved in it.

With a 24-hour trading volume of $77,537,230,884 USD current Bitcoin price is $27,348.25 USD. In the previous 24 hours, Bitcoin has dropped 13.48% With a market cap of $520,644,471,681 USD as per CoinMarketCap.