Cryptocurrency Is Virtual Property That Is Protected by Law, Chinese Court Rules

A Chinese intermediate tribunal based successful Beijing precocious upheld a little court’s ruling which determined that cryptocurrency is simply a virtual spot protected by the law. The tribunal clarified that regulations issued by the Bank of China and others lone prohibit the circulation of virtual currency.

‘Financing Behaviour Prohibited by the Law’

An intermediate tribunal successful China precocious upheld a little court’s ruling that designated litecoin a virtual spot protected by the country’s laws, a study has said. The tribunal clarified that the country’s applicable administrative regulations lone prohibit the circulation of virtual currency oregon its usage arsenic a currency.

The Beijing-based court’s ruling followed an entreaty by Chinese nonmigratory Ding Hao who wanted it to quash the little court’s ruling successful a lawsuit successful which helium is accused of failing to instrumentality 33,000 litecoin (LTC) arsenic per an statement with Zhai Wenjie.

According to a document released by the court, connected December 5, 2014, Hao received 50,000 LTC from Wenjie and was obliged to wage this backmost successful 4 batches. The past repayment of 8,334 LTC was expected to person been paid by October 15, 2015, the tribunal papers shows.

However, citing regulations issued by the Bank of China and different applicable departments which authorities that virtual currency is not protected by the instrumentality — Hao argued that the little tribunal erred erstwhile it ruled successful favour of Wenjie. In addition, Hao tried to formed his indebtedness statement with Wenjie arsenic a “financing behaviour prohibited by the law’ and truthful it should not beryllium protected by the law.

‘LTC Is a Network’

Nevertheless, successful rejecting Hao’s assertions, the Chinese intermediate tribunal insisted that the regulations cited by the suspect are simply “regulatory opinions” and that these successful nary mode diminish his obligations.

Concerning the cryptocurrency, the tribunal determined that portion LTC is simply a “network currency” it inactive lacks cardinal properties of a currency specified arsenic “legal compensation and compulsion.” The cryptocurrency, however, has the characteristics of virtual spot and according to the court, Wenjie is entitled to rights that travel from possessing specified property.

“The tribunal held that litecoin has the properties of virtual spot and virtual goods … Zhai Wenjie tin bask the corresponding spot rights and the ground of the spot close claim,” the tribunal papers states.

Consequently, the intermediate tribunal ruled that the determination of the little tribunal would stand, and that Hao indispensable instrumentality the outstanding 33,000 LTC to Wenjie. Bitcoin.com News reported connected a similar communicative from China involving bitcoin earlier this year, successful May.

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