Bitcoin is Now Recognized as Legal Virtual Property by Shanghai High Court

In a landmark decision, the status of Bitcoin in China has shifted significantly. The Shanghai High People’s Court has classified the world’s largest cryptocurrency, Bitcoin, as a virtual property protected by Chinese law in conclusion to a recent case. This ruling signifies a notable departure from previous regulatory stances.

This means The Shanghai High Court has affirmed that cryptocurrencies hold property attributes under Chinese law, solidifying their status as virtual commodities. This acknowledgment is a crucial step in providing clarity and legal protection for Bitcoin holders within the region.

Details surrounding the case reveal that The Shanghai High People’s Court reportedly shared a notice on its official WeChat channel affirming that Bitcoin was viewed as virtual property. Furthermore, this came after careful consideration of Bitcoin's economic value and inherent properties.

It's important to note that while Bitcoin is now recognized as virtual property, A Shanghai court has recognized virtual currency as property under Chinese law, affirming its legal status while emphasizing that this classification does not permit its use as a form of payment or legal tender. The ban on cryptocurrency trading and initial coin offerings (ICOs) remains in effect.

This development presents a complex landscape for cryptocurrency in China. While direct trading remains prohibited, the recognition of Bitcoin as virtual property opens up possibilities for inheritance, ownership rights, and potentially other legal avenues. This ruling could influence future regulations and court decisions regarding digital assets in the region.