Shanghai court rules cryptocurrency ownership is legal in China.
Judge confirms Bitcoin and other cryptos are considered property.
Chinese Bitcoin market sees rapid growth amid shifting legal landscape.
Shanghai court has ruled that it is legal for individuals in China to own cryptocurrencies like Bitcoin. The decision, handed down by Judge Sun Jie of the Shanghai Songjiang People’s Court, clarifies that while the Chinese government maintains stringent crypto trading regulations, ownership remains permitted.
This ruling comes after years of uncertainty surrounding cryptocurrency’s status in China. While the country’s government had previously imposed strict bans on cryptocurrency activities in 2021, particularly targeting exchanges and mining operations, this decision marks a shift in how cryptocurrencies are viewed legally.
Judge Sun clarified that Bitcoin and similar assets should be classified as property, making them eligible for legal ownership under Chinese law.
The ruling, reported by the South China Morning Post, acknowledges the government's continued crackdown on speculative trading in cryptocurrency markets.
However, it also indicates that the authorities intend to refrain from banning the asset class fully. The decision separates cryptocurrency ownership from speculative trading, which remains heavily regulated.
This development is notable given China’s ongoing influence on the global Bitcoin market. Chinese miners still account for over half of the Bitcoin network’s hash rate despite the country's regulatory stance.
Additionally, many tech-savvy Chinese investors have continued to engage with the cryptocurrency market, finding ways to bypass restrictions. Bitcoin’s recent price surge, nearing $100,000, has further fueled interest among these investors, with some experts forecasting even higher prices shortly.
With this legal clarity, China’s Bitcoin market could experience further growth, particularly as investors gain more confidence in the asset’s legal status.
This ruling has the potential to reshape the regulatory environment surrounding cryptocurrencies in China, though it remains to be seen how the government will balance its desire for control with the growing interest in crypto assets.
