A Shanghai court has clarified that personal ownership of cryptocurrency is legal in China. The statement comes during a record-setting rise in Bitcoin prices. Bitcoin enthusiasts are now speculating whether the price will cross $100,000 in the coming days.
Shanghai Court on Cryptocurrencies
This development provides legal clarity for cryptocurrency holders amid Beijing’s crackdown on commercial crypto activities.
Sun Jie, a judge at the Shanghai Songjiang People's Court, published an article this week on the Shanghai High People’s Court's WeChat account. He stated that individuals are not prohibited from holding cryptocurrencies.
However, business activities involving cryptocurrenciesremain banned to protect financial stability. Sun highlighted that cryptocurrencies, as virtual commodities with property attributes, are not inherently illegal under Chinese law.
???????? JUST IN: Shanghai judge says #Bitcoin and crypto are legal for individuals to own but bans commercial token issuance and investments. pic.twitter.com/qfoQ3gUZg6
— Cointelegraph (@Cointelegraph) November 21, 2024
This legal position stems from a case involving a dispute between two companies over an initial coin offering, which is categorized as illicit financing. The judge emphasized that speculative trading activities disrupt economic order and are thus strictly regulated.
Bitcoin Eyes $100,000 Mark
Bitcoin's recent rally has added to the global spotlight on cryptocurrencies. The cryptocurrency surged past $99,000 this week, driven partly by news of former U.S. President Donald Trump’s re-election and his promise to adopt a pro-crypto stance.
As of writing, Bitcoin is traded at around 99500.00. The H4 chart shows that the price has been surging toward the North by obeying a trend line. If the price consolidates, it may find support at the flipped level of 98,000. A bullish reversal pattern could attract buyers to go long, potentially driving the price toward the key 100,000 mark.
BITCOIN Looks read for $100000 - #BTCUSD TradingView https://t.co/Wwq1hz3muR
— Trendonomics by Harsh Dixit (@TrendonomicsHD) June 22, 2024
Former Official Faces Charges
China’s restrictions on cryptocurrency activities began in 2017 with a ban on initial coin offerings and crypto exchanges. These measures escalated in 2021 with a prohibition on Bitcoin mining and a broader ban on crypto-related businesses.
Despite these restrictions, some courts in Chinahave previously ruled that cryptocurrencies qualify as personal property under existing laws.
Separately, the Central Commission for Discipline Inspection announced this week that Yao Qian, former head of the People's Bank of China’s digital currency research institute, was involved in a bribery case involving cryptocurrency. This case marks a setback for crypto advocates in China, especially given Yao's earlier pro-crypto remarks.
Despite local legal clarifications, China’s regulatory stance on the broader crypto industry remains restrictive. Experts like Zhu Guangyao, China’s former finance vice-minister, have called for opening the market to ensure China remains competitive in the global digital economy.
This article was written by Tareq Sikder at www.financemagnates.com.
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