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Bitcoin Officially Acknowledged in Shanghai as a Digital Currency

In September, another Chinese court recognized cryptocurrencies as legally protected virtual assets. Specifically, the Shanghai No.2 Intermediate People’s Court in China acknowledged Bitcoin as a unique, irreplaceable digital asset with scarcity and intrinsic value.

This court report, released on September 25, discussed the evolution of internet technologies, emphasizing that among digital currencies, Bitcoin stands out for its distinctiveness. The report highlighted unique qualities, including scarcity and property attributes.

It noted Bitcoin’s essential currency features like scalability, ease of circulation, storage, and payment. Despite being decentralized and lacking central control, it continues to gain global acceptance.

This recent legal recognition bolsters the legitimacy of Bitcoin and other digital currencies in China. Despite China’s overall cryptocurrency ban, local courts increasingly affirm the legal status of Bitcoin and similar digital assets.

Notably, this recognition by a significant Shanghai court contrasts with the Chinese government’s unfriendly stance towards Crypto in general. In 2021, China imposed a comprehensive ban on all cryptocurrency activities, including mining.

Nevertheless, various Chinese courts have affirmed the legal status of Bitcoin and digital assets, considering them protected by the law. For instance, a People’s Court in China previously released a report on September 1, concluding that digital assets qualify as legal property deserving legal protection.