Shanghai Judge Says Personal Ownership of Crypto Is Legal
Judge Sun Jie of the Shanghai Songjiang People’s Court published an article on the Shanghai High People’s Court’s official WeChat account, clarifying the legal stance on virtual currencies.
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Judge Sun Jie of the Shanghai Songjiang People’s Court published an article on the Shanghai High People’s Court’s official WeChat account, clarifying the legal stance on virtual currencies.
In the release analyzing a 2017 business dispute case, the judge clarifies that no organization or individual may engage in illegal token issuance and financing activities. The court states that in China, virtual currencies don’t have the same status as legal tender.
Despite this, the judge notes that virtual currencies have value as virtual commodities. She writes:
Therefore, although it is not illegal for an individual to simply hold virtual currency, commercial entities cannot participate in virtual currency investment transactions or even issue tokens on their own at will.
Judge Sun Jie of the Shanghai Songjiang People’s Court. Source: Weixin Official Accounts Platform
According to regulations by the People's Bank of China and other departments, virtual currency-related business activities are illegal financial activities. Clarifying the reasons why virtual currency-related activities are prohibited, the judge mentioned possible disruptive impacts of trading, including Bitcoin speculation on financial systems.
There are also risks that the assets will be used by criminals for illegal activities, according to the judge.
In the end, judges noted that contracts involving virtual currencies may be invalid and enterprises and individuals taking part in virtual currency transactions need to take into account that their rights may not be effectively protected.
Related: China May Relax Its Crypto Ban: HashKey Group CEO Says
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