Local Chinese court argues cryptocurrency is property despite Beijing’s crackdown
- Crypto property rights should be protected except when the virtual asset is used for crimes or was acquired through a crime, the court argued
- In Hong Kong, a landmark ruling earlier this year recognised crypto assets as property amid the city’s push to develop the sector
A local Chinese court argued that cryptocurrency is legally protected as property in China, despite recent government policies that have sought to crack down on activities related to virtual assets.
Cryptocurrency should be treated as property and the ownership of it should be protected by law under China’s current legal and policy framework, a court in the southeastern city of Xiamen wrote in an opinion article published on Friday in People’s Court Daily, a newspaper run by the Supreme People’s Court.
A cryptocurrency owner’s property rights should be protected except when the virtual asset is used to commit crimes or was acquired through a crime, the court argued.
Beijing has intensified its crackdown on many cryptocurrency-related activities over the years. While its special administrative region of Hong Kong was recently given the nod to embrace virtual assets and open up trading for any retail investors, Beijing maintains a hostile stance towards cryptocurrencies on the mainland.
The legality of virtual assets, however, have been the subject of debate in China, and the Xiamen court’s opinion piece highlights an increasing recognition among authorities in the country that the ownership of cryptocurrencies, which are deemed a type of virtual commodity, is protected.
The Xiamen court argued that cryptocurrency is property because it has “economic attributes” including usefulness and exchange value, which “exists objectively” as it circulates legally in overseas markets.