Notwithstanding the comprehensive prohibition put over the cryptocurrency a year back, the authorities in China even now shield native crypto investors because crypto assets are considered virtual property shielded by the jurisdiction of the country.
A Chinese Lawyer Asserts Possessing BTC Is Not Banned in the Country
China, also known as one of the most prominent Bitcoin (BTC) hostile countries across the globe, has not put a prohibition on owning crypto assets, as per the law company “Lesperance & Associates’ founder David Lesperance. The holders of crypto assets within Chinese territory are shielded by jurisdiction if an infringement of a loan contract or a theft occurs, as Lesperance stated.
The lawyer cited the recent case in a Chinese court taking into account an infringement of a loan taken in a crypto token Litecoin (LTC). Ding Hao, the defendant of the case, remained unsuccessful in completely recompensing the entire amount of up to 50,000 in LTC debited in 2015 from Zhai Wenjie. This became a prominent court precedent taking into account crypto in Chinese jurisdiction.
Since 2015, Litecoin’s price has elevated by nearly 1,800%. Seven years back, the trading position of the crypto token was staking at $3, as per CoinGecko (a crypto data company). on 31st August, it was ruled by the Beijing No. 1 Intermediate Court that Zhai owed the defendant the remaining Litecoin amount, refuting Ding’s point that the crypto transfers were prohibited by the People’s Bank of China (PBoC) in the previous year.
Commercial Exchange of Crypto Is Still Prohibited in China, Says Lesperance
As per Lesperance, the holdings in crypto assets such as Litecoin are considered by the court as property despite them being developed in the world of virtual assets. He asserted that the community of cryptocurrency should not pull any specific positive results from the respective case because the lawsuit was just a usual commercial loan clash that got resolved under regular rules of the property law.
Up till now, he added, it is not prohibited to own crypto in China. This, in his words, does not make commercial crypto trading legitimate because has particularly prohibited the exchanges of cryptocurrency in China. Though the lawyer asserted that the crypto authorities have placed a ban on crypto exchanges, a few native enthusiasts in the crypto industry are optimistic that the individuals have never been banned by PBoC from crypto trading.