Chinese Court Declares Bitcoin Is "Virtual Property"
May 13, 2022 5:07 PM EDT

This week, Shanghai High People’s Court said that Bitcoin, the world's largest cryptocurrency by market capitalization, is a "virtual property" entitled to legal protections under Chinese law. This declaration stunned outsiders, given the country's decision to ban cryptocurrency last year.

One of the days if nobody beats me to it, I am going to create a thread here highlighting all the campaigns promises of president elect Trump relating to Bitcoin and Cryptocurrency. When he finally gets sworn in and if he eventually starts fulfilling them, then I'll return to the thread to tick them off. As a non American, I understand the effect of implementation and non-implementation of his promises on a global scale. All we can do right now is hope that he keeps to his word. We'd send him a person thank you note if he does.

It isn't a ruling and the court merely clarified that it is classified as a personal commodity and businesses are still not allowed to transact or use it as an investment vehicle. I don't believe China would lift the ban anytime soon, the problem with capital control persists.

I do hope that Trump does follow through with his campaign but assigning someone on his/her merits. We do need someone who can actively push Bitcoin in the society rather than just another guy to line his pockets up.

I really don't know why people are so fascinated by China in the context of BTC?

He has no choice, and he knows that all eyes is on him specially with all of his promises with regards to crypto. And it looks like he will have to fulfill it when he officially becomes the next president next year.

Chinese courts made such decisions a long time ago - and I really don't know why people are so fascinated by China in the context of BTC? Bitcoin as something decentralized has no place in a society ruled by communism - in other words, I don't see how China would allow trading with BTC again unless the policy changes completely.

(1) Bitcoin is not legal tender. Both the “Notice” and the “Announcement” point out that Bitcoin is not currency, it is not issued by the monetary authority, has no monetary properties such as legal compensation and compulsion, does not have the same legal status as currency, and cannot and should not be used as currency in the market. Circulation use. Therefore, the fields that it is engaged in as legal tender are not allowed by the government.

(2) Bitcoin is a virtual commodity. “Notice” pointed out that Bitcoin is a virtual commodity. The country does not recognize the identity of Bitcoin virtual currency, but recognizes it as a virtual commodity. Because the concept of virtual goods is larger than virtual currency, currency is a special kind of commodity. Bitcoin is not recognized as currency, but it is considered a commodity.

(3) Bitcoin-related activities prohibited by the state are: token financing trading platforms must not engage in the exchange business between legal currency and tokens, or “virtual currencies”, and cannot buy or sell tokens or as a central counterparty. “Virtual currency” shall not provide services such as pricing and information intermediary for tokens or “virtual currency”. Financial institutions and non-bank payment institutions shall not directly or indirectly provide products or services such as account opening, registration, trading, clearing, and settlement for token issuance financing and “virtual currency”, and shall not underwrite related tokens and “virtual currency” The insurance business may include tokens and “virtual currency” into the scope of insurance liability.