Cryptocurrency Is Virtual Property That Is Protected by Law, Chinese Court Rules – Regulation Bitcoin News

Cryptocurrency Is Virtual Property That Is Protected by Law, Chinese Court Rules – Regulation Bitcoin News

A Chinese intermediate court docket primarily based in Beijing just lately upheld a decrease court docket’s ruling which decided that cryptocurrency is a digital property protected by the legislation. The court docket clarified that rules issued by the Bank of China and others solely prohibit the circulation of digital forex.

‘Financing Behaviour Prohibited by the Law’

An intermediate court docket in China just lately upheld a decrease court docket’s ruling that designated litecoin a digital property protected by the nation’s legal guidelines, a report has mentioned. The court docket clarified that the nation’s related administrative rules solely prohibit the circulation of digital forex or its use as a forex.

The Beijing-based court docket’s ruling adopted an attraction by Chinese resident Ding Hao who needed it to quash the decrease court docket’s ruling in a case by which he’s accused of failing to return 33,000 litecoin (LTC) as per an settlement with Zhai Wenjie.

According to a document released by the court, on December 5, 2014, Hao obtained 50,000 LTC from Wenjie and was obliged to pay this again in 4 batches. The final compensation of 8,334 LTC was imagined to have been paid by October 15, 2015, the court docket doc reveals.

However, citing rules issued by the Bank of China and different related departments which state that digital forex isn’t protected by the legislation — Hao argued that the decrease court docket erred when it dominated in favor of Wenjie. In addition, Hao tried to solid his mortgage settlement with Wenjie as a “financing behaviour prohibited by the legislation’ and due to this fact it shouldn’t be protected by the legislation.

LTC Is a Network’

Nevertheless, in rejecting Hao’s assertions, the Chinese intermediate court docket insisted that the rules cited by the defendant are merely “regulatory opinions” and that these on no account diminish his obligations.

Concerning the cryptocurrency, the court docket decided that whereas LTC is a “community forex” it nonetheless lacks key properties of a forex akin to “authorized compensation and compulsion.” The cryptocurrency, nonetheless, has the traits of digital property and in response to the court docket, Wenjie is entitled to rights that come from possessing such property.

“The court docket held that litecoin has the properties of digital property and digital items … Zhai Wenjie can benefit from the corresponding property rights and the premise of the property proper declare,” the court docket doc states.

Consequently, the intermediate court docket dominated that the choice of the decrease court docket would stand, and that Hao should return the excellent 33,000 LTC to Wenjie. Bitcoin.com News reported on an identical story from China involving bitcoin earlier this yr, in May.

What are your ideas on this story? Let us know what you suppose within the feedback part beneath.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, creator and author. He has written extensively concerning the financial troubles of some African international locations in addition to how digital currencies can present Africans with an escape route.














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