A ruling handed down by China’s Hangzhou Internet Court on July 18th, 2019 recognizing Bitcoin (BTC) as digital property has sent ripples through China’s cryptocurrency community, raising questions of whether the Chinese government will shift its position on virtual currencies, crypto exchanges, and Bitcoin mining in the future.
According to a report by Cointelegraph, BTC is now legally recognized by the local Chinese court, causing excitement for local members of the crypto community as the move might signal a positive policy shift by Chinese authorities.
Court documents revealed that the Hangzhou Internet Court ruled that cryptocurrency should be considered virtual property as it is “valuable, scarce, and disposable.”
Still, virtual currency experts remain doubtful as to the stance of the Chinese government, which recently announced a ban on local exchanges as well as initial coin offerings (ICOs). Due to these legal restrictions, residents in China are unable to trade crypto to fiat money.
Meanwhile, other players in the cryptosphere are concerned that other crypto-related activities, such as mining and marketing may face a clampdown from the government. There have been reports that certain local government agencies in China have been discussing the possibility of banning crypto mining outright, with some administrative areas in the country having entirely banned the organizing of any event related to digital currencies.
Though the future of the crypto landscape in China remains unclear, this latest court ruling has complicated China’s stance on virtual currencies and has given hope to crypto enthusiasts.
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