Content
Introduction
In a significant development, a People’s Court in China has released a report shedding light on the legal status of virtual assets.
The report dives into the criminal law attributes of these digital assets, highlighting that, under the current legal policy framework, virtual assets remain legal property, deserving protection under the law.
China’s People’s Courts operate independently and, we are told, are free from interference by administrative or public bodies.
They handle a wide array of cases, including criminal, civil, administrative, and economic disputes.
“Identification of the Property Attributes of Virtual Currency and Disposal of Property Involved in the Case”
The report, titled “Identification of the Property Attributes of Virtual Currency and Disposal of Property Involved in the Case,” recognizes the economic attributes of virtual assets, classifying them as legitimate property.
This declaration is notable as China has recently declared all foreign digital assets illegal, imposing a comprehensive ban.
However, the report argues that digital assets held by individuals should still be safeguarded by existing policy.
Additionally, the report offers recommendations on handling crimes involving virtual assets.
It suggests that when the money and property involved cannot be confiscated, a unified approach merging criminal and civil law should be pursued.
This would ensure a fair balance between safeguarding personal property rights and upholding societal and public interests.
China’s stance – our view
China’s stance on cryptocurrencies is, at best, a complex one!
Despite imposing stringent regulations and banning foreign crypto exchanges, Chinese courts have sometimes adopted a more favorable stance on digital assets.
For instance, earlier this year, a Shanghai court affirmed Bitcoin as virtual property, subject to property rights.
Conclusion
While China’s approach to cryptocurrencies has undergone shifts, the recent report highlights the nuanced and evolving legal landscape surrounding virtual assets in the country.
As discussions continue, these developments could play a crucial role in shaping the future of digital assets within China’s regulatory framework.