Ban on Bitcoin in China? No. This myopic and reckless era of the Chinese economy is over. A Shanghai court has issued a surprise verdict, declaring that possession of cryptocurrency is not illegal under Chinese law, finally giving cryptocurrency holders some legal peace of mind.
Sun Jie, judge of the Songjiang People’s Court in Shanghai, explained this situation in a statement posted on the WeChat account of the Shanghai Higher People’s Court. Takeaway meals? Citizens can legally hold cryptocurrencies as personal property, but companies cannot invest or issue tokens without strict oversight.
Only 11 countries have a GDP greater than the value of Bitcoin. Soon there will be only 7. At the peak of this cycle, there will likely be only 2 countries with economies larger than Bitcoin: China and the United States.
– FRANCIS – BULLBITCOIN.COM (@francispouliot_) November 21, 2024
The statement follows a case involving a dispute over an initial coin offering, which was characterized as illicit financing under China’s hardline policies.
Beijing still views crypto as a financial grenade, banning related business activities outright to avoid economic chaos. Although crypto can confer property rights on individuals, its use commercially or as payment for shady transactions remains prohibited.
Owning Crypto in China Not Illegal, Judge Says
Judge Sun Jie of the Shanghai Songjiang People’s Court provided the first legal clarity in years regarding the ownership of cryptocurrencies. Writing on the official WeChat account of the Shanghai High People’s Court, Sun said individual ownership of cryptocurrencies does not violate Chinese law.
“It is not illegal for individuals to hold cryptocurrencies,” Justice Sun emphasized, adding that the government mainly targets speculative trading activities and attempts to ensure financial stability.
The revelation surfaced during a lawsuit involving two companies over an initial coin offering (ICO), an activity China considers illegal. While cryptocurrency trading and mining remains prohibited, this new perspective adopted by a Shanghai court marks a subtle but significant differentiation between owning digital assets and actively trading them.
The crackdown in China began in 2017 with ICO bans and exchange shutdowns, reaching warp speed in 2021 with mining bans and a total ban on crypto activities.
Yet reports suggest that individuals and institutions remain involved through underground channels, often using foreign currencies for their transactions.
Remarkably, China still controls the majority of the global Bitcoin hash rate, a glaring contradiction given the ban. Behind the scenes, investors and mining companies appear to be finding ways around the restrictions without openly defying regulatory authorities.
DON’T MISS: Last chance to get Bitcoin with PayPal before 100,000 BTC price explodes
The Big Picture After China’s Bitcoin Ban
China’s influence on the cryptocurrency market extends well beyond its borders. Despite the ban on domestic trade, the country’s mining dominance contributes significantly to the Bitcoin ecosystem.
With Bitcoin currently hitting record highs globally, the growing demand for digital assets even within China’s borders is hard to ignore.
For investors and industry leaders, this nuanced clarification offers cautious optimism. Even if trade remains prohibited, legal validation of ownership could inspire discussions about reassessing China’s strict policies in the wake of global adoption trends.
DISCOVER: 16+ Upcoming Cryptocurrencies That Will Explode in December 2024
Final Thoughts on China’s Bitcoin Reversal
By distinguishing between holding and trading, China could signal a more pragmatic approach towards digital assets.
Although far from lifting its crypto ban, China may be on the verge of recognizing the undeniable impact of blockchain technology on the future economy.
For now, the global cryptocurrency community is watching closely, aware that any changes in Chinese policy could have significant market repercussions.
EXPLORE: BONK Returns WIF Targets DOGE Crown: Some Traders Now Store Profits in BONK Rather Than SOL
Join the 99Bitcoins News Discord here for the latest market updates
Shanghai court overturns China’s Bitcoin ban: will China’s energy network survive? appeared first on .
