China’s Court Recognizes Bitcoin as a Legally Protected Asset

The Shanghai District Court has recently ruled in favor of a Bitcoin owner and awarded him compensation.

Notably, the court has recognized that the digital gold is subject to property rights, rules and laws, and has published a document confirming this fact.

The decision has been made in connection with a lawsuit filed in October 2020, in which the prosecutor wanted to recover a loan of 1 BTC. The Supreme People’s Court of Shanghai has recognized that 1 BTC has value, so the lender has a legal right to a refund.

This case is of historical significance if we consider the circumstances. China has previously introduced an official ban on cryptocurrencies, arguing they are a threat for the financial sector of the country.

The court has ruled in favor of the plaintiff, and the defendant now must return the BTC. However, this will not be easy to implement, since operations with cryptocurrencies in China are no longer considered legal. As a result, the parties have agreed the defendant will pay compensation at a reduced price of BTC.