China: Cryptocurrency has asset characteristics and is not completely banned

Recently, a ruling from the Songjiang District People's Court in Shanghai determined that cryptocurrency (BTC, BNB, ETH..) has "asset characteristics" under Chinese law, allowing individuals to own them but not to use them as legal payment methods or investment tools. This ruling was made in the context of a lawsuit related to illegal ICO issuance.

However, while individuals can legally own cryptocurrency, business activities related to it are still prohibited, leading to a concerningly complex picture of the cryptocurrency market in China. Despite strict regulations, some investors still seek to participate in this market through decentralized and P2P channels, indicating the growing popularity of cryptocurrency as an investment option in the context of a challenging economic environment.

So far, the policy rigidity remains, but signals of change, such as the acceptance of cryptocurrency by some companies, suggest that the possibility of change cannot be ruled out in the future.