China has recently clarified that owning cryptocurrencies is not illegal and has been defined as personal property under Chinese law. However, the use of cryptocurrencies is strictly limited to personal ownership and as commodities, not as legal tender or investment tools for businesses. This ruling was made by the Shanghai Songjiang People’s Court in a recent judgment on November 18.
Judge Sun Jie explained that while individuals can legally possess cryptocurrencies, businesses are facing significant restrictions as they are prohibited from engaging in crypto investments, trading, or token issuance. This decision came during a case involving two companies disputing an initial coin offering, which is considered illegal in China.
The crypto community has reacted positively to this development, seeing it as a potential softening of China’s strict stance on Bitcoin and other cryptocurrencies. Max Keiser, a Bitcoin advocate, believes that this ruling signifies a significant shift in China’s attitude towards cryptocurrencies, recognizing Bitcoin’s growing influence.
Although China still views cryptocurrencies as a threat to financial stability, there have been subtle developments like Nano Labs, a China-based crypto mining chip company, accepting Bitcoin payments. This has sparked speculation about a gradual shift in China’s approach to cryptocurrencies.
It is important to note that while individuals have always been able to hold cryptocurrencies in China, commercial crypto-related activities have long been banned. This ruling does not change the legal position but may indicate a slight opening up towards cryptocurrencies in the future.
As Bitcoin’s value continues to rise, reaching above $97,000 at the time of this report, these developments in China could have implications for the global cryptocurrency market. It will be interesting to see how China’s stance on cryptocurrencies evolves in the coming months and how it impacts the broader crypto community worldwide.
