CoinVoice has recently learned that, according to the China Court website, the People's Court of Xiangyin County, Hunan Province, has recently heard a case involving the repayment of loans with virtual currency. The court ruled that virtual currency does not have the same legal status and legal compensability as legal tender, and the borrower's use of virtual currency to repay debts is invalid.
The case shows that the debtor, Wang, used virtual currency to repay a debt of 20,000 yuan through the 'TR Foreign Currency Platform,' which was later identified by public security authorities as suspected of virtual currency network pyramid schemes. The court cited the notice released by the central bank and ten other departments in September 2021 (on further preventing and handling the risks of speculation in virtual currency transactions), determining that this repayment behavior violated financial management order.
The court emphasized that any legal entity, non-legal entity organization, or individual investing in virtual currency and related derivatives that contravenes public order and good customs renders the relevant civil legal acts invalid, and any losses arising therefrom must be borne by themselves. The final judgment of this case requires the debtor to fulfill their repayment obligation in legal tender. [Original link]
