Chinese Court Allows Bitcoin Holding and Transfers

Chinese Court Allows Bitcoin Holding and Transfers

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.


8,744 USD


437.73 USD


1.08 USD

Related news

Discovering Bitcoin Part 1: About Time

As anticipated in the introduction to this series, we will start exploring the period of monetary (pseudo)history prior to fiat money, which we call “Plan A,” focusing on the topic of time and on the question “When?” There won’t be much cryptography or computer science in what follows: It will all sound very simple, even … primitive! Indeed, I would ask you, dear reader, to try to forget your advanced education and your civilized manners, and pretend, just for a few minutes, to be a fish-eating caveman. This is the first installment of bitcoiner Giacomo Zucco’s series “Discovering Bitcoin: A Brief Overview From Cavemen to the Lightning Network.” Read the Introduction to his series here. From Immediate Consumption … to Storage … Your caveman life is based on immediate consumption: You use your bare hands and a pointy stick to catch two fish every day, then you go back to the cave and you eat them immediately. One fish would be enough to survive, two are enough to feel “Thanksgiving full.” Every day you catch and eat two. You don’t save. It’s always the same. Your “utility function” (this is what a fancy economist would call it) is constant with respect to time. But let’s try to think about the future for a bit! What if, instead of eating both fish, you eat just one and save the second (alive in a jar, for example)? Do it for two days in a row, and on the third day you will be able to eat your fill without even going out to fish! I will admit this is not a great improvement yet: You just give up some pleasure today and tomorrow, in order to get some rest on the third day. Not impressed. … to Investment! But what about spending that third day building a fishing rod (“capital good”), which would enable you to catch four fish instead of two, every day, forever? That’s called investment: You give up some pleasure for a while, but in return you get some productive and durable results. Congratulations, dear reader: You are a “low-time-preference capitalist caveman” now! With your brand new fishing rod, you can eat two fish every day and rest every two days! But why stop here? You could invest some of your day off in building a large fishing net, which you could use to get eight fish a day! By saving and investing, you can get more fish, thus have more time to build something more efficient, as long as there are improvements to achieve. The more time you spend saving and investing, the wealthier you get.  The growth is not even linear: Every improvement can build on top of the previous one! Soon enough, you will be “Captain Caveman”: commanding a huge fleet of wonderful fishing boats, getting 1,000 fish a day!  It’s easy to underestimate the deep implications of this process. Predisposition to invest (after having saved, delaying consumption) is linked to something economists call “low temporal preference,” which is, in turn, connected to very important effects on the well-being of people and of entire civilizations!  A very good account of the significance of these topics and of their relationship with monetary technologies and practices is given in the book The Bitcoin Standard by Saifedean Ammous. Read it, if you haven’t. Another great reference is the essay “Money, Bitcoin and Time” by Robert Breedlove.  Physical “Hardness” In order to be useful for this kind of process, a good must possess a good “hardness”: Any unit of said good should not significantly lose its ability to provide utility if stored over some period of time. (This means the good does not easily decompose, deteriorate or degrade, or it does so comparatively less than other goods.)  Other common terms for this attribute are “durability” and “salability across time.” (In the context of your currently solitary condition, you should interpret the “sale” part as “you selling something to your future self.”)  In all of the cases above, the expressions are often used beyond the physical scope to include the social and institutional attributes of goods as well. Since you are a lonely caveman, and there is no society or institution around you yet, we employ the term “hardness” only in the narrower sense of physical resistance to deterioration of the units of good, delegating other aspects to Part 3 (coming soon). The good we chose as our first example, fish, is not very “hard,” comparatively, at least not if you don’t perform some specific actions as soon as you bring it back to your cave. A trivial action would be to keep it alive in a jar, as mentioned. Without additional treatments, a fish kept alive is more durable than a dead one. A smoked or salted fish, though, would be even more durable than one kept alive.  A New Attribute: “Scaleness” Even dismissing social considerations, there is another reason for which unitary physical durability doesn’t really cover, alone, the broader concept of scalability across time. The fact is that the ability to store arbitrary quantities of a good is not dependant only on its unitary attributes! At the beginning of your virtuous cycle of saving and investment, you decided to eat one fish and to store the other alive. How convenient that, in order to survive, you needed to eat exactly one fish and not, for example, one and a half fish, leaving you with half a fish to store!  Indeed, a live fish isn’t great for divisibility. Smoked, salted or refrigerated fish would fare way better. On the other hand, considering that by the time you appointed yourself “Captain Caveman” you started storing 1,000 fish every day, keeping them alive in jars must be quite challenging. Again: Conserved fish would be way easier to store than living specimens. In these examples, the discriminant is not how well any unit of good maintains its value across time, but rather how well the overall good maintains it across “scale”: when you store smaller fractions of it vs. when you store larger multiples.  The former case is usually addressed in monetary theory with the term “divisibility,” the latter with the term “portability” (which often carries some movement-across-space connotations, but ultimately boils down to the fact that a portable good must possess high value in small bulk).  The composite attribute is sometimes called “salability across scale,” which, just like “salability across time,” is actually pretty neat. Since I like shorter terms, I will use the (almost made-up) word “scaleness” instead (I guess this is a case of terminology choice which would deserve a Trigger Warning as I described in my introduction). This attribute has more to do with the “What?” column than with the “When?” one, to be fair. It’s interesting to note the nice link with the word “scalability,” which usually means something else entirely (it refers to the property of a system to handle a growing amount of work by means of additional resources). Within the context of Bitcoin, however, it has been used to address the technical limitations on the number of settlement transactions per unit of time and cost (related to the fact that blocks are limited in size and frequency). In this very specific meaning, the “salability problem” could be reduced to a divisibility one (basically, it doesn’t make economic sense to transfer amounts that are less valuable than the transfer costs), thus the conceptual link is justified. So far, you’ve learned: to store your wealth, sacrificing immediate consumptionto invest your stored wealth, increasing your productivityto focus on goods that show good physical “hardness” and good “scaleness.” But what can you do with all of the fish you catch every day? Not much, actually, if you are still able to consume just two and you can’t exchange them, which is something you will learn about tomorrow, in Part 2. The post Discovering Bitcoin Part 1: About Time appeared first on Bitcoin Magazine.
Bitcoin Magazine

Taking a Look At Bitcoin Taxes Around The Globe

The popularity of cryptocurrency has been steadily increasing over the last few years. People from all over the world are increasingly adopting cryptocurrencies as both payment tools and investment opportunities. And where there is money there is tax. While tax rules have been non-existent or quite vague in most countries, tax agencies have started waking up.  In the past two months alone, 4 nations have taken action on crypto taxes: Portugal made cryptocurrencies tax free, France declared crypto to crypto trades as non-taxable, the US sent out warnings to crypto traders and the UK demanded info on crypto traders from major exchanges. Such action is likely to continue as Bitcoin gains wider recognition. This article focuses on the taxation of bitcoin in a handful of regions around the world. USA In the USA, virtual currencies are treated as property and not as currency for the purposes of federal crypto taxation. This means that any transaction you undertake using bitcoin will be taxed using the taxation framework utilized for property. As property transactions result in capital gains – so do crypto transactions. The tax rate for capital gains depends on how long you held the assets, if you are selling assets that you bought within the past year – this will incur short term capital gains which are taxed at the same rate as your regular income. Holding for longer than a year will incur long-term gains which have a tax rate of between 0% to 20%. As the long term tax rate is usually much lower than short-term rates it’s preferable to hold for a year before disposing of assets. European Union The European Court of Justice (ECJ) has stated that bitcoin transactions should be exempted from VAT. While this simply means that buying and selling bitcoin will not attract VAT, cryptocurrencies may still be subject to other forms of taxation, including income tax and capital gains. For tax purposes, the fiscal treatment of bitcoin tends to differ between each country within the European Union. United Kingdom The UK also does not treat cryptocurrencies as money or currency. In this regard, the tax treatment is similar to other countries like the US. However, UK’s tax authority HMRC has classified cryptocurrencies into 3 distinct categories: Exchange token, Utility token, Security token. At present these are taxed in the same way but treatment is likely to change in the future. Bitcoin falls under the ‘Exchange tokens’ category. Any profits derived from selling/trading cryptocurrencies is taxed as a capital gain. The UK uses a pooling system for capital gains; in a nutshell a pool is basically the average cost of all coins within it. So, whenever you sell or dispose of crypto you have to use the cost of the pool to determine the capital gain/loss. Portugal Portugal recently released a statement that makes buying/selling/trading cryptocurrencies completely tax-free. It is so far the only European country to have taken such a stance. The statement follows Portugal’s closed tax system where only the items explicitly listed can be taxed such as stocks, bonds etc. This makes Portugal a lucrative country for crypto traders. Germany In Germany, bitcoin has been considered a form of private money since 2013. Bitcoin owners are subjected to capital gains tax, which is currently 25%. However, this tax is levied only in cases where bitcoin profits are achieved within a year after the owner acquired them. This means that taxpayers that hold this cryptocurrency for more than a year are not subject to capital gains tax.  Japan Japan identifies bitcoin primarily as a payment method. As of 1st July 2017, the Payment Services Act stated that the sale of bitcoin would be exempt from the Consumption Tax. Virtual currencies such as bitcoin in Japan are treated as asset-like values that can be transferred digitally and also used for making payments. The profits you get from bitcoin are thus viewed through the lens of business income. Owners, therefore, are taxed with both the income and capital gains tax. Australia Australia treats virtual currency as items of barter arrangements. The reason for this is that currencies such as bitcoin are treated as assets and thus are liable for capital gains purposes. Businesses that undertake bitcoin-related transactions in Australia are therefore obliged to accurately record, document and date these specific transactions. On the other hand, firms that receive bitcoin payments are required by law to declare the value as ordinary income. The unique thing about Australia is that personal bitcoin-related transactions have tax exemptions in certain circumstances. One such example is if the bitcoin was utilized for the purposes of paying for personal goods or services, and another is when the value of the transaction falls below AUD 10.000 (Australian Dollars). Activities such as mining or exchanging are considered stock trading and so are taxed. Bottom line While the above nations have specific frameworks regarding the taxation of cryptocurrencies such as bitcoin, others lack regulation altogether. In countries like Malaysia and Singapore, the capital gains tax is not yet in place. Tax authorities across the globe are known for their particular tightness on defaulters so it would be prudent to study the regulatory guidelines currently in place in your jurisdiction. This way, you will be better able to report or pay tax on bitcoin transactions, as you are legally obliged to.  It is also worth mentioning that if you have made significant gains or have not filed your crypto taxes for previous years – now would be a good time to revisit them. If you are in doubt seek professional help from a crypto tax accountant. The US recently sent letters to thousands of crypto traders while the UK has requested info from tax agencies. Tax action is likely to continue to increase as cryptocurrencies are recognized more widely. Robin Singh is a cryptocurrency tax consultant based in the UK. He is also the founder of – a cryptocurrency tax solution that simplifies capital gains reporting in the US, Australia, Ireland, among other countries. The post Taking a Look At Bitcoin Taxes Around The Globe appeared first on Coin Insider.
Coin Insider

BitMEX CEO responds to Binance’s market maker slip up, offers CZ a “copy/paste” course

Arthur Hayes, the CEO of BitMEX, responded to Changpeng Zhao’s false accusations of a market maker attack—satirically. Hayes offered him a “copy/paste” course for 51 percent of his equity, alluding to earlier plagiarism accusations. Zhao replied he’d be happy to buy-in. CZ’s quick fingers get him in trouble, yet again The rivalry between two of the biggest crypto derivatives platforms in the world shows no signs of stopping. The CEO of BitMEX, the first exchange to introduce a crypto futures trading platform, Arthur Hayes missed no opportunities to take a jab at their main competitor—Binance.  Changpeng Zhao, the CEO of Binance, has been known for his easygoing attitude towards slip ups and mistakes made by his company. But, this time Zhao’s attitude got the best of him when he hastily accused one of Binance’s clients of attacking its futures platform. In a Twitter post, Zhao said that the attacker as a “well-known” account that attempted to use the sudden price drop in Binance’s Bitcoin futures to turn a profit and liquidate other clients. However, it quickly turned out that the sudden futures price drop wasn’t due to a malicious attack, but was caused by a “bad parameter” set by the client.  Zhao’s lighthearted way of dealing with situations like these wasn’t well-received by the crypto community, with many criticizing him for posting harsh accusations and lacking a fundamental understanding of how futures trading platforms work. Hayes uses the opportunity to take a jab at CZ Joining the slew of those criticizing Zhao was Arthur Hayes, the CEO of Binance’s main competitor BitMEX. He took the opportunity to continue his Twitter back-and-forth with him and criticize him for the incident.  In a tweet, Zhao said that no users were affected by the drop in the future’s price thanks to a supposed invention by Binance. The innovation, he explained, was setting off liquidations based on the exchange’s own index price, and not the futures price. In response to a user who tweeted that liquidations tied to the index price were a long-time staple at BitMEX, Hayes offered to teach Zhao how to run a crypto derivatives platform.  Next time I’m down in Singapore @cz_binance please attend my running a crypto derivatives platform 101. I teach advanced cntl+C cntl+V methods. Price of entry … 51% of your equity. — Arthur Hayes (@CryptoHayes) September 16, 2019 This isn’t the first time a crypto-influencer used the old “Ctrl+c/Ctrl+v” hotkey hook and jab combo. Ethereum co-founder Vitalik Buterin used the same insult against Justin Sun when evidence surfaced that a significant portion of the TRON whitepaper was plagiarized from other projects.  Zhao seemed to have appreciated the joke, saying he would be happy to attend any class taught by Hayes in exchange for 49 percent of a venture he runs.  lol, let me book that flight for ya. Happy to attend any class to own 49% of any venture you run. (I read the tweet again, it was misleading in the way it was written. I didn't mean the index price liquidation is our invention. but anyway… no edit button) — CZ Binance (@cz_binance) September 16, 2019 The jokes were well received by the crypto community, where (mostly) light-hearted insult-slinging between industry heavyweights is a favorite spectator sport among Crypto Twitter. The post BitMEX CEO responds to Binance’s market maker slip up, offers CZ a “copy/paste” course appeared first on CryptoSlate.

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.