The Shenzhen Court of International Arbitration (SCIA) has recently affirmed that cryptocurrencies, are not consider legal currencies but are considered legal property. That means that Chinese citizens have a right to own and transfer their cryptocurrencies as they are their own property.
The court claims that:
“Although Bitcoin may not be a legal currency, that does not prevent it from being protected by law as a property,” said SCIA in the released case analysis. “The Party contends that Bitcoin has characteristics of a property (SOV) that can be controlled by the owner; it has economic value and can bring economic benefits to the owner.”
It’s important to mention that the SCIA isn’t a lawmaking body itself, and therefore the arbitrator in question doesn’t have any influence over the long run standing of crypto assets as a legal currency in Chinese jurisdictions. Nevertheless, this will set a judicial precedent for citizens to treat crypto assets as legal property.
Although the Chinese legal space usually looks opaque to outside audiences, this case ought to function a transparent example to point out that the courts aren’t intractably hostile to the rights hostile to the rights of private citizens over bitcoin ownership.
Cryptocurrencies hold value and transacting with value holds legal position. As such, the Chinese court set to place Bitcoin and other digital coins as legal property, although they’re not recognized as currencies under Chinese law.