Chinese Court Declares Personal Crypto Ownership Legal In Mainland China

Christian Encila

6 months ago

3 mins read

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Bitcoin and crypto ownership in China have been debated and have raised policy questions for years. But a recent Shanghai court ruling clarified that it’s perfectly legal for citizens to hold, buy, and sell Bitcoin or other cryptocurrencies.

Judge Sun Jie of the Shangai Songjiang People’s Court explained in an article via WeChat that it’s not illegal for Chinese citizens to hold cryptos, even though the courts have already ruled that business entities are not allowed to keep, buy, or sell cryptocurrencies at will. Jie’s insights were part of a case review on a lawsuit involving two companies in an initial coin offering that’s illegal in the country.

Coin Offerings Remain Illegal

Judge Sun Jie’s comments were part of a case review involving two companies engaged with digital assets in 2017. According to records, an agricultural company expressed its intention to finance a digital asset. It then worked with an investment company to draft its whitepaper and issue the tokens.

A Shanghai court has released an opinion stating that the personal ownership of cryptocurrencies is not against Chinese law, offering explicit legal clarity for crypto holders on the mainland amid a record-setting bitcoinprice surge.

Sun Jie, a judge at the Shanghai Songjiang… pic.twitter.com/NfclXYh3o7

— Visegrád 24 (@visegrad24) November 21, 2024

Then, the agricultural company approved a Blockchain Incubator Agreement with the investment firm. After drafting the token’s whitepaper, the investment company was paid 300,000 Yuan for its services. Under this premise, the agricultural company expected that the investment firm would release the tokens. It was the start of a misunderstanding, leading the company to seek a full refund.

Planned Token Financing And Release Is ‘Potentially Illegal’

In Judge Jie’s notes, the planned financing and release of these tokens are potentially illegal. The planned initial coin offering falls under unlawful public financing. The court has ruled that no organization or individual can illegally finance or issue digital assets.

The complaint of the agricultural company is deemed invalid by the court since the planned financing and token release would have been illegal. Still, the court instructed the investment firm to reimburse 250,000 yuan after careful evaluation.

Court Raises Risks Of Cryptocurrencies

In the same notes, Judge Sun Jie explained that holding cryptocurrencies is not illegal. However, she explained that the Chinese government imposes strict restrictions because of the risks involved.

However, the rules on cryptocurrencies change in business since crypto use can impact the financial and economic order. Judge Sun Jie says these are the primary reasons why Chinese laws impose strict rules on the use of cryptocurrencies.

China first banned initial coin offerings and closed online crypto exchanges in 2017. The authorities continued their campaign against crypto in 2021 and even banned mining and other cryptocurrency-related businesses.

Featured image from DALL-E, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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