The regulatory services offered by the People’s Bank of China and other bodies somehow restrict crypto-related business activities.
Max Keiser, a Bitcoin advocate explained the judgment as an outstanding shift, saying that China has started to know the growing influence of Bitcoin.
Judge Sun Jie encouraged one can hold cryptocurrencies legally, but businesses related to this can face some limitations as they are banned from involving themselves in crypto investments.
The latest judgment by the Shanghai Songjiang People’s Court has given clarity that holding cryptocurrency is legal in China. On November 18, the judgment by the court came which stated that virtual assets have property attributes under the laws of China.
Although, the use is extremely restricted to self-possession as well as commodities, but not a legal tender or investment tool. Judge Sun Jie of the People’s Court clarified this statement at the time of solving a case between two companies that were involved in a dispute over the initial coin offering.
No ban on holding crypto
The initial coin offering is an activity considered illegal in China. The Judge further went on to explain that the laws of China do not ban holding cryptocurrency directly. However, the regulatory services offered by the People’s Bank of China and other bodies somehow restrict crypto-related business activities.
She also noted that digital currencies do not hold the legal status of official tender but have property value as digital commodities. She also encouraged that one can hold cryptocurrencies legally, but businesses related to this can face some limitations as they are banned from involving themselves in crypto investments, trading as well as token issuance.
What she exactly wrote was, “However it is not illegal for a person to possess digital currency, commercial bodies can not take part in digital currency investment transactions or even issue tokens on their own at will.”
What do the experts say?
The crypto community is excited after this judgment. However, many say that it is a probable softening of China that it has been historically firm over its stand on cryptocurrencies. Max Keiser, a Bitcoin advocate explained the judgment as an outstanding shift, saying that China has started to know the growing influence of Bitcoin.
At the same time, Eliezer Ndinga, VP at 21Shares, gave clarity that the legal position will not be affected and will remain the same. One can always have cryptocurrency in China, but commercial crypto-related activities have been banned.
From the point of view of China, it is still a threat to financial stability, some fine developments such as Nano Labs, accepting Bitcoin as a payment method have ignited talks related to the beginning of the shift.
The shift can be a result of Bitcoin following an upward trend, following the win of Donald Trump for the position of President in the US.
