The Shanghai Court Recognizes Bitcoin’s Unique Attributes
The Shanghai Second Intermediate People’s Court in China has stated that Bitcoin (BTC) possesses unique attributes that set it apart as a virtual asset. In a report titled “Legal Attributes and Judicial Disposal of Digital Currency,” the court emphasized the distinctive nature of Bitcoin when compared to other digital assets.
According to the court, Bitcoin’s scarcity, inherent value, ease of circulation, and storage contribute to its uniqueness. These attributes make it stand out in terms of its status as a non-replicable cryptocurrency. This declaration by the court raises questions due to the Chinese government’s blanket ban on cryptocurrencies in 2021.
Chinese Courts’ Support for Bitcoin as Property
Chinese courts have previously argued in favor of considering Bitcoin as property based on its value and practical applications. In a recent report on the legality of digital assets, a People’s Court in China affirmed that these assets are protected by law and thus considered legal property.
The court also provided guidance on conducting criminal and civil proceedings involving virtual assets. It acknowledged that money involved in such cases cannot always be confiscated, necessitating separate trials for these situations.
The Dilemma Surrounding Bitcoin and Justice
The Shanghai court’s report highlighted the challenges faced by courts in interpreting laws related to cryptocurrencies. It cited two cases involving thefts of Tether and Bitcoin to illustrate the complexities surrounding digital assets.
The main difficulties identified by the court include seizure methods and the transfer process. Unlike traditional assets, virtual assets often require bilateral cooperation from defendants to be seized since they cannot be confiscated without access to private keys.
Hot Take: Shanghai’s Role in Web3 Development
With ongoing developments related to web3 in Shanghai, analysts speculate that the region could serve as a testing ground for mainland China’s web3 plans. Despite China’s opposition to private cryptocurrencies, Shanghai’s exploration of crypto assets and web3 technologies indicates a potential shift in the country’s stance.
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