Chinese court declares possession of Bitcoin legal in the country

A recent ruling by the Chinese Supreme Court recognized the possession of cryptocurrencies, such as Bitcoin, as legal under the category of assets in the country.

The measure does not change the prohibitions already established on the use of digital assets such as currencies or financial instruments. However, it represents an advance in the recognition of its property characteristics.

The decision came during the trial of a case involving two companies accused of fraud in a token launch. In the opinion, the Court condemned the practices as illegal public financing, reaffirming the strict prohibition on issuing and raising funds through tokens.

The resolution highlighted that, although the possession of cryptocurrencies is legitimate, any activity related to raising capital through digital assets remains prohibited.

• Also read: Cryptocurrencies that could benefit from Bitcoin’s price explosion

Bitcoin na China

Despite severe restrictions, the classification of cryptocurrencies as commodities opens up limited possibilities for legal enforcement. This approach is in line with China's selective support for blockchain technology, especially in sectors such as cross-border payments and trade facilitation.

During the recent BRICS Summit, China emphasized the potential of blockchain in international trade, even using cryptocurrencies in transactions with Russia. Additionally, the digital yuan, the Chinese central bank digital currency (CBDC), has been integrated into global trade initiatives.

The country's restrictive cryptocurrency policies continue to fuel international debates about the impact of China's stance on the global digital scene.

Over the years, several Chinese courts have recognized Bitcoin as virtual property, despite government restrictions on cryptocurrencies.

In May 2022, the Shanghai People's Court declared that Bitcoin has economic value and property characteristics and is protected by Chinese laws.

In September 2023, the Shanghai No. 2 Intermediate People's Court reaffirmed this position, recognizing Bitcoin as a unique and non-replicable digital asset with scarcity and intrinsic value.

• Also read: Mastercard and JP Morgan integrate blockchain platforms for B2B payments

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