Regulatory Series on Cryptocurrencies: Chinese Court’s Ruling on ‘Bitcoin as Commodity’

Of late, the crypto-avenues are booming with meticulous regulatory framework following constructive and conducive reports from quite a few American Senators who effectively portrayed Bitcoin as unique from the hugely-hyped Libra. While the traders have recently witnessed Bitcoin rally of about 344% (i.e.BTCUSD surged from the lows of $3,122.28 levels to the June highs of $13,880 levels in just 6-7 months or so). 

While Dovey Wan’s Crypto Twitter handle divulged the buzzing news that Bitcoin has been legitimately recognized as a virtual currency with monetary authority by the Hangzhou Internet Court.

Furthermore, the Hangzhou Internet Court appends credence to the asset in China, declaring the virtual currency legal and explaining that “the cryptocurrency meets the virtual property requirements because it has value, is scarce and disposable.”

This isn’t precisely quite a new thing that pioneer cryptocurrency ‘Bitcoin’ is contemplated as a legal property by the Chinese judicial bodies. 

In the recent past, the Shenzhen Arbitration Commission stated: “the asset should be protected in accordance with the law.”

In 2017-18, as per the People’s Bank of China (PBOC) publication, to prevent financial risks, China was intending to step up measures to eliminate onshore or offshore platforms pertaining to cryptocurrency trading or ICOs, but for now, they seem to be open for the crypto-ecosystem.