|Oct 26, 2018 03:37 PM||By: Jinia Shawdagor | 1652 Views|
In a recent court case in China related to digital assets, China has come out stating that bitcoin is protected by law due to its property nature and economic value.
The case was held in the Shenzhen International Court of Arbitration and related to an Equity Transfer Agreement related to cryptocurrencies. The case review states "This case is a dispute over equity transfer, which is a new type of case because it involves special types such as BTC (Bitcoin), BCH (Bitcoin Cash) and BCD (Bitcoin Diamond)."
The case relates to a payment in equity not made to a third party, the funds were supposed to be paid in cryptocurrency and this is where the Court of Arbitration gets involved. The court concludes that "there are no laws and regulations that prohibit it ($BTC) from becoming an object of private delivery or transfer." Furthermore the court also claimed that "The digital assets of Bitcoin are legally protected", The arbitral tribunal held that Bitcoin is not a fiat currency and does not prevent Bitcoin from being protected by law as a property.
The move proves that China believe Bitcoin and similar digital assets are incorporated into Chinese law and protected in terms of monetary value.
The conclusion on the case does also stipulate that Bitcoin, Bitcoin cash and Bitcoin diamonds are not issued by the monetary authorities, so there is no interest on Bitcoin, Bitcoin cash and Bitcoin diamonds.