China Court Classifies Digital Assets As Property Despite Blanket Ban By Government
A People’s Court in China has stated that under the existing legal framework, digital assets have economic value and are still legal property backed by law.
In a recently published report cited by local media analyzing the legality of cryptocurrencies, the court highlighting the criminal law attributes of virtual assets concluded that the assets maintain their attributes as legal property.
Per the report, the court suggested several ways to deal with cryptocurrencies linked with crimes without affecting the private rights of citizens.
It noted that while crypto might not be confiscated based on its nurture, it should be kept separately under civil and criminal law. The report concludes that personal property and money should be treated from a “standpoint of legality.”
This comes after the Chinese government declared a blanket ban on all private cryptocurrencies in 2021 enforcing a major clampdown on web3 firms and influencers in mainland China.
Despite the ban, Chinese courts have made several pronouncements in sharp contrast with the decision establishing that digital assets have legal backing as personal property.
This year, a district court in Shanghai ruled on Bitcoin's ownership right after it ruled in favor of a Bitcoin owner's right to compensation over an unpaid loan.
The ratio of the court was based on Bitcoin’s value and scarcity it falls under the spectrum of personal property.
The Chinese government has been at loggerheads with digital assets leading to a blanket ban on all private cryptocurrencies in the country.
In 2021, the government announced a ban on all crypto transactions including exchanges, influencers, and other related groups.
The People’s Bank of China cited market risks for its citizens stating that
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