A new article published by the People's Court, a judicial body in China, declared that virtual assets such as cryptocurrencies are legal properties and must be protected by law.
This article was published despite China enacting a general ban on all crypto-related activities and banning foreign crypto exchanges from offering their services to the country's clients.
In the article titled “Determining the Ownership Qualifications of Virtual Currency and Disposing of Involved Property”, it was stated that the criminal law qualities of virtual currencies were analyzed and they were not classified as illegal goods.
Therefore, under the current legal policy framework, virtual currencies held by relevant entities in China are still considered legal property and protected by law, according to the document.
The article argued that in criminal acts involving virtual money, the money and property involved in the case cannot be confiscated or returned in any way and must be dealt with separately, on the basis of a unified criminal and civil law order.
The document also made recommendations to combat crimes involving virtual assets, stating that such cases should be addressed with a balanced protection of personal property rights and social and public interests.
The document reflects the contrasting stance of Chinese courts on Bitcoin and other virtual assets over the years. Despite a hostile national policy regarding virtual assets, many Chinese courts have found that virtual asset owners have property rights.
*Not investment advice.