China High Court Recognises The Legality Of Crypto Ownership For Individuals

The Shanghai High Court has ruled that cryptocurrencies possess “property attributes” under Chinese law, affirming their value as virtual commodities.

However, the court upheld China’s strict prohibition on using crypto for commercial activities such as token issuance and speculative trading, according to the court’s ruling.

The court clarified that while virtual currencies are considered property and are not explicitly banned, business activities involving them remain illegal. This distinction underscores China’s broader policy of curbing financial instability and criminal activities tied to cryptocurrencies, such as fraud and money laundering.

According to the ruling, individuals may legally hold cryptocurrencies as personal assets. However, engaging in crypto-related business ventures exposes entities to significant legal risks.