China’s draft warns about the trading activities of virtual currencies like Bitcoin and Ethereum. China had stated that it could lead to disrupting the financial order and would threaten the people’s property safety, which aims to counter risky activities.
The proposal concerns the legal validity of cryptocurrency acts and acknowledges their resemblance to network virtual property. Crypto for debt settlement recognized by the court on September 4, 2017, investment contracts. After the mining ban, any related contract would be recognized invalid.