China rules Bitcoin is a digital currency

China’s Shanghai Second Intermediate People’s Court has recognized Bitcoin as a unique and non-replicable digital asset. The court also acknowledged Bitcoin’s scarcity and inherent value.

According a report released by the Chinese court, digital currencies such as Bitcoin stand out as unique and non-replicable. The report noted that among virtual currencies, Bitcoin is different and unique from the rest of the digital assets.

The report lauded Bitcoin’s relative scarcity and property attributes noting that Bitcoin inherits key currency features such as scalability, ease of circulation, storage, and payment.

Despite a blanket ban on cryptocurrencies in China, there have been legal arguments for defining bitcoins as personal property in local Chinese courts.

China has been hostile towards Bitcoin, imposing a blanket ban on all forms of cryptocurrency activities including Bitcoin mining in 2021.

Yet, several courts in China over the years have recognized Bitoin and other digital assets as legal properties protected by law.

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