A recent announcement from a court in Shanghai, China has recognized Bitcoin as a unique digital currency, despite the country’s official ban on cryptocurrencies. Justin Sun, the founder of Tron, highlighted that the Shanghai No. 2 Intermediate People’s Court published an article affirming certain characteristics of Bitcoin.
The article differentiated Bitcoin as a distinct digital currency, setting it apart from virtual currencies like Q coins. It cited Bitcoin’s scarcity, global acceptance, and inherent monetary properties. This contrasts with China’s typical classification of cryptocurrencies as speculative investments.
However, China’s crypto ban remains firmly in place. Regulatory bodies in China prohibit cryptocurrency trading and mining. The court expressed that Bitcoin’s attributes make it difficult to ignore in legal contexts. When disputes arise over theft or ownership, the article suggests Bitcoin can be considered personal property, acquired through purchase, mining, or inheritance.
This announcement builds on a previous decision in May 2022, when a Shanghai court also acknowledged Bitcoin’s legitimacy. At that time, a legal expert argued China’s laws could protect cryptocurrency holders despite the trading ban.