A document was issued by the Shanghai High People’s Court stating that Bitcoin is subjected to property rights laws. This was in connection to a lawsuit that was filed in a district court on October 2020 and which sought to recover a 1 Bitcoin (BTC) loan. The lower court considered Bitcoin to have value, scarcity, and disposition, thus making it subject to property rights. It also met the definition of virtual property.
According to Sina, the Shanghai Baoshan District People’s Court ruled for plaintiff Cheng Mou and ordered defendant Shi Moumou return the Bitcoin. The case was remanded to the court after the defendant failed to comply. A mediation was held in May 2021. The parties reached an agreement that the defendant would pay compensation at a discount on the Bitcoin’s value at the time of the loan.
Since Bitcoin trading is prohibited in China, it was impossible to determine the current value of the Bitcoin loaned. According to the publication, the case was complicated further by the restrictions of enforcement and court investigator authorities that cannot conduct inquiries about virtual property.
China started cracking down cryptocurrency trading in 2017 and increased its efforts in 2017. The government began to remove cryptocurrency miners from power grids and KV against crypto market. Since then, it has turned its attention on “NFT-related illicit financial activities.”
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China is also leading the world in the introduction of a digital currency central bank (CBDC). The Beijing Winter Olympics saw the first widespread adoption of the digital yuan, despite Covid restrictions.