The Shanghai High People’s Court has released a paper stating that Bitcoin is subject to property rights regulations. This was issued concerning a case filed in October 2020 at a district court to recover a 1 Bitcoin debt (BTC). According to the lower court, Bitcoin had value, scarcity, and disposability and met the definition of virtual property, thus being subject to property rights.
According to Sina, the Shanghai Baoshan District People’s Court sided with the plaintiff Cheng Mou and ordered the defendant Shi Moumou to return the Bitcoin. The case was returned to the court in May 2021 for a mediation after the defendant failed to comply. Since the defendant no longer held the Bitcoin, the parties agreed that the defendant would compensate the plaintiff at a discount from the Bitcoin’s value at the time of the loan.
Due to China’s restriction on Bitcoin trading, it is impossible to determine Bitcoin’s current value. This issue was further complicated by the inability of court investigation and enforcement agencies to investigate the virtual property.
In 2017, China intensified its crackdown on cryptocurrency trade, which began in 2016. The government continued disconnecting bitcoin miners from the electricity grid. It has recently shifted its focus to illegal financial transactions using NFTs.
China has simultaneously taken the global lead in launching a central bank digital currency (CBDC). Despite Covid 19’s impacts, the digital yuan was widely used for the first time during the Beijing Winter Olympics.
