- Shanghai court confirmed that personal cryptocurrency ownership was legal.
- China retained dominance, controlling over 50% of the global Bitcoin hash rate amid the regulatory shift.
As a seasoned analyst with over two decades of experience navigating the complex world of finance and technology, I find the recent developments in China’s cryptocurrency landscape intriguing. The Shanghai court’s confirmation that personal ownership of cryptocurrencies is legal marks a significant shift in China’s stance on digital assets, and it underscores the resilience and adaptability of the Chinese crypto community.
In an unprecedented decision, a Shanghai court determined that owning cryptocurrencies is legal under Chinese law.
The unexpected explanation given brought essential legal security for cryptocurrency owners residing in mainland China, indicating a change in China’s perspective towards digital currencies.
It’s worth noting that this announcement arrived at a time when Bitcoin’s [BTC] price was experiencing a remarkable jump, nearing the $100K level, which has further ignited discussions and conjectures among investors.
Judge Sun Jie weighs in
Moreover, Judge Sun Jie of the Shanghai Songjiang People’s Court has recently brought clarity to the legal landscape regarding cryptocurrency ownership within mainland China.
According to a post shared on the official WeChat account of the Shanghai High People’s Court, Sun affirmed.
“Not illegal for individuals to hold cryptocurrency,”
Although China enforced a prohibition on cryptocurrency transactions starting from 2021, this decree provided an important legal difference. It signified that owning digital assets personally is not against Chinese law, while the regulatory limitations on crypto trading continue to be enforced.
To clarify, Sun pointed out the distinction between holding and trading cryptocurrencies. In simpler terms, he elaborated on the concept of owning versus exchanging these digital currencies.
Therefore, legal frameworks consistently enforce strict measures to control and limit risky investments in the crypto market.
In the course of examining a contentious matter between two corporations, stemming from a disagreement about an Initial Coin Offering (ICO), it was established that such offerings are still forbidden within China’s legal framework. Additionally, cryptocurrency mining is also outlawed in this context. As a crypto investor, I find it crucial to stay informed about these regulatory updates to make prudent investment decisions.
China’s crypto history
In the realm of my research, I’d like to shed light on an intriguing event that unfolded last year. You may not be aware that in 2021, the Chinese government decided to prohibit cryptocurrency trading and Bitcoin mining. This decision came after a significant surge in Bitcoin’s value, reaching an all-time high of $64,000. The market responded to this by correcting itself, with Bitcoin’s price subsequently dropping down to approximately $30,000.
Nevertheless, Chinese residents persisted in owning cryptocurrencies, resorting to overseas platforms for trading purposes.
As a crypto enthusiast, I’ve been considering the possibility that China’s latest actions could be a countermeasure to the efforts made by former U.S. President Donald Trump to position the United States as a leading global hub for cryptocurrencies.
It’s worth pointing out that China holds a undisputed position in the realm of cryptocurrencies.
China still controls over 50% of the global Bitcoin hash rate, dominating mining operations.
Additionally, Chinese investors are seeking out different methods for crypto involvement, which raises queries concerning China’s future plans in this area.
Indeed, the latest statement from ex-Vice Minister of Finance Zhu Guangyao advocates for a reevaluation of China’s standpoint on digital currencies, mirroring the intricacies involved in determining China’s stance as worldwide trends and regulations shift.
What’s more?
To sum up, Eliézer Ndinga, who holds the position of Vice President at 21Shares, confirmed that the Chinese legal position hasn’t changed.
For a while now, people have had the freedom to own cryptocurrencies. However, commercial crypto-related activities such as trading and mining have been restricted during this period.
He put it best when he said,
“[China has] nothing like the Executive Order 6102, which forbid holding gold in 1933 in the US.”
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2024-11-23 01:12