The post Shanghai Court Confirms Crypto’s Legality as Property in China appeared on BitcoinEthereumNews.com.

A Judge in China has confirmed the legality of crypto assets as a commodity. China’s Bitcoin and crypto ban remain in place but with a shift in the overall outlook. The Shanghai High Court confirmed in a recent judgment that cryptocurrencies have property attributes and are not prohibited by law. These protections, however, only apply to crypto as a commodity, not as currency or business instrument. China’s Tough Crypto Regulation These comments were made during a fraud case involving two corporations and a failed token launch. As revealed in a new WeChat post, the unnamed agricultural development company plaintiff signed an agreement with the defendant, an investment management firm, for token issuance. The plaintiff entrusted the defendant with issuing blockchain tokens based on smart contract technologies such as Bitcoin and Ethereum. The agricultural firm paid the defendant service fees totaling RMB 300,000. However, a year later, the investment firm failed to deliver on the token, citing high APP development costs.  The plaintiff’s expectations were crushed, so it filed a lawsuit in the People’s Court. In its filing, the firm requested that the investment management firm terminate the contract and repay the 300,000 yuan service fee. The court strongly denounced actions from both firms and ruled, “Raising so-called ‘virtual currencies’ such as Bitcoin and Ethereum from investors through illegal issuance and circulation of tokens… is essentially an act of illegal public financing without approval. Therefore, no organization or individual may engage in illegal token issuance and financing activities.” The Judge added that the agreed service items are illegal financial activities and, therefore, rendered the Blockchain Incubation Agreement involved in the case void. The Court claimed that crypto had value as a commodity and that no prohibitions existed for individuals holding crypto.  However, the Judge highlighted that crypto-related business activities are regarded…

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Filed under: News - @ November 22, 2024 5:28 am