Though the Shenzhen Court of International Arbitration reckoned the pioneer digital currency should be protected by contract law; it is still not considered as legal tender within China
The origin of the ruling came from one of the country’s special economic zones.
According to cnLedger and a WeChat publication of the case review, the Shenzhen Court of International Arbitration ruled that holding and transferring BTC is not prohibited. It further states the asset should be protected by law as it is a property that possesses an economic value and benefits.
Shenzhen Court Case Review
A plaintiff, whose identity is not divulged, filed a case against a defendant for failing to return 20 BTC, 50 BCH, and 13 BCD (a total of $493,158).
The WeChat post tells the dispute involved a special type of equity transfer. The country does not have a concept or law that defines the attributes of Bitcoin whose delivery is based on blockchain technology. This entailed that the court used the country’s existing Contract Law and good faith in the arbitration of the case.
The court concluded, on the basis of the contract law, ownership of Bitcoin, even if not considered as a legal tender, should be legally protected within the country.
China and its Ambiguous Crypto Stance
A few months ago the country stepped up efforts to cracked down on cryptocurrencies and ICOs. Some exchanges, such as Binance and OKEx, are not available in the country. Also, blockchain and ICO focused social media accounts from WeChat was terminated.