Despite enforcing a significant cryptocurrency ban twelve months ago, china government still protects local crypto investors as crypto is known as virtual property paid by what the law states.
Among the world’s most hostile countries toward Bitcoin (BTC), China hasn’t yet banned the having cryptocurrencies, based on David Lesperance, founding father of Lesperance & Associates law practice.
Crypto holders in China are safe through the law in situation of thievery, misappropriation or breach of the loan agreement, Lesperance told Cointelegraph. He emphasized that crypto exchanges continue to be banned in China.
The attorney known a current Chinese court situation involving a breach of the loan produced in the Litecoin (LTC) cryptocurrency. Defendant Ding Hao unsuccessful to completely repay all 50,000 LTC he lent from Zhai Wenjie in 2015, which grew to become a significant court precedent involving cryptocurrency in China.
Since 2015, the cost of Litecoin has leaped roughly 1,800%, because the cryptocurrency was buying and selling around $3 seven years back, based on data from CoinGecko.
On August. 31, the Beijing No. 1 Intermediate Court ruled the defendant owed Zhai the rest of the quantity of Litecoin, rejecting Ding’s argument the People’s Bank of China (PBoC) formally banned crypto transactions this past year.
“The court has upheld that cryptocurrencies like Litecoin are ‘property’ while they are produced within the virtual realm,” Lesperance stated. He emphasized the crypto community “shouldn’t draw any particular positive inferences” in the situation because it would be a “very ordinary” commercial loan dispute that was settled under normal property law rules, stating:
“To date, having crypto in China is not banned. […] It doesn’t result in the commercial buying and selling of this kind of property legal, because the government has particularly banned crypto exchanges in China.”
While Lesperance states that crypto exchanges are banned in China, some local crypto enthusiasts are certain that the PBoC hasn’t clearly banned individuals from buying and selling cryptocurrencies.
“It’s correct that China does not want visitors to trade crypto. However this isn’t being designed in any formal document,” an individual from the crypto industry in China told Cointelegraph.
Based on the source, many landmass users see their charge cards frozen when they utilize them for crypto over-the-counter (OTC) transactions. However, reliable OTC channels still allow crypto transactions in China.
“So despite the fact that buying and selling crypto isn’t illegal, we don’t wish to waste our time quarrelling with banks because clearly, they believe everything about crypto is against the law,” the individual stated.
The most recent news brings another bit of evidence that crypto is not totally covered up in China because the government announced a coordinated attack on crypto in September 2021. As formerly reported, China came back its position because the second-largest Bitcoin hash rate provider by The month of january 2022.