A report from a People’s Court in China asserts that:
“In the current legal framework, virtual assets are still considered legal assets and protected by law.”
This view was quoted by local media on September 1, despite the strict bans that were enacted by the Chinese government in 2021.
From the court’s point of view, virtual assets have valuable economic properties that can therefore be classified as legal property and are protected by law under the current regulatory framework.
The report also proposes how to handle cases related to virtual assets and facilitate the protection of private property ownership and social interests.
This information has shown the softening of the Chinese government’s stance on cryptocurrencies over time.
” The People’s Courts of the People’s Republic of China exercise judicial power independently and are not subject to interference by an administrative or public organization; courts try criminal, civil and administrative cases as well as economic disputes.
The report titled “Identification of the Property Attributes of Virtual Currency and Disposal of Property Involved in the Case” acknowledged that virtual assets have economic attributes and thus can be classified as property, reported a local daily. Although China has deemed all foreign digital assets illegal by imposing a blanket ban, the report argues that virtual assets held by individuals should be considered legal and protected by law under the current policy framework.
The report also added suggestions to deal with crimes involving virtual assets and noted that since the money and property involved in the case cannot be confiscated, it should be based on the unification of criminal and civil law. Such cases should be treated separately to achieve a balanced protection of personal property rights and social and public interests.
China imposed a blanket ban on all crypto-related activities and banned foreign crypto exchanges from offering their services to mainland customers.”
“An instance of such difference arose in September 2022, when a lawyer suggested that crypto holders in China are protected by the law in case of theft, misappropriation, or breach of a loan agreement despite the ban on crypto. Later in May 2022, a Shanghai court affirmed that Bitcoin qualifies as virtual property and thus is subject to property rights.
China’s hostile stance against Bitcoin and other cryptocurrencies has been a long-drawn one. However, over the past few years, the government seems to have softened its stance. This was evident from the rise in China’s Bitcoin mining share, which dropped to zero post-blanket ban but rose to take the second spot within a year.”
” March 7, the government announced that its current banking and insurance watchdog, the China Banking and Insurance Regulatory Commission (CBIRC), will be abolished.
The responsibilities of this commission will be moved to a brand new administration, as will particular functions of the central bank and securities regulator. The legislature will vote on a plan for institutional reform on Friday, March 10.
When in place, the new financial regulator will “strengthen institutional supervision, supervision of behaviors and supervision of functions,” according to the plan.
Currently, the financial industry in China is under the supervision of the People’s Bank of China (PBOC), the CBIRC mentioned above, and the China Securities Regulatory Commission.
This announcement follows a call for reforms for party and state institutions in China from the country’s President Xi Jinping. These reforms will also include a bureau for sharing and developing data resources, which will partly replace the duties of the current Office of the Central Cyberspace Affairs Commission.”
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