Cryptocurrencies Recognized as Legal Property in China
In a surprising move, Chinese courts have ruled that cryptocurrencies are protected as legal property under Chinese law, despite the official ban on crypto trading and mining. The ruling came from the People’s Court in China, which affirmed the legal status of digital assets in a country where obtaining them is not legally allowed.
Confusion and Contradiction in China’s Crypto Rules
While cryptocurrencies have been recognized as legal property, China’s approach to crypto regulations remains confusing. Harsh punishments are being given to officials and entrepreneurs involved in the crypto industry, with a former Communist Party official recently receiving a life sentence for accepting bribes linked to supporting crypto mining operations. This contradictory behavior highlights the arbitrary control exerted by Beijing over digital assets and players in the field.
Crypto Holdings Cannot Be Seized, Crimes to Be Handled Differently
The People’s Court ruling states that crypto holdings cannot be seized and crimes involving digital assets should be treated differently from those involving traditional property. This recognition further emphasizes the legal status of cryptocurrencies under Chinese law, despite the nationwide ban on cryptocurrency transactions issued by the central bank in September 2021.
Hong Kong Approves Licenses for Crypto Exchanges
In contrast to Beijing’s stance, Hong Kong has started approving licenses for crypto exchanges, signaling a more open approach to cryptocurrencies. Many speculate that Hong Kong is becoming a pilot zone for potential crypto policies in mainland China. However, it is important to note that China’s ban on cryptocurrency has proven largely ineffective, as it remains one of the largest markets for crypto globally.
Hot Take: China’s Conflicting Actions Reflect Ambivalence Towards Crypto
China’s recent ruling on the legal status of cryptocurrencies seems to contradict its strict ban on crypto trading and mining. This ambivalence reflects the government’s struggle to control and regulate digital assets while also recognizing their economic value. It remains to be seen how China will navigate its stance on cryptocurrencies in the future.
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