Bitcoin (BTC) has gained legal recognition by a second Chinese court during a further boost for the cryptocurrency in one amongst its harshest environments.
A watershed for Bitcoin in China
According to capitalist Dovey Wan, who joined to local media coverage, the Hangzhou internet Court formally represented Bitcoin as virtual property on July 18.
The second such court to attribute property status to Bitcoin, the ruling came about as a part of a dispute between a now-defunct exchange and one among its users who lost funds.
For Wan, the case marks a major watershed for Bitcoin in China, wherever a blanket ban on trading it's been in place since September 2017.
BTC/USD rallied sharply weekday on the back of positive comments from U.S. lawmakers, however, China likely additionally influenced the come to form.
“This case may be a major milestone that manifested BITCOIN is truly LEGAL in China,” she wrote on Twitter.
‘It’s virtual property, however not fiat money’
As Top Market Group reported, China has long formed a curious focus for Bitcoin analysts despite the state-imposed moratorium on using it. As Bitcoin staged a comeback in 2019, proof began emerging that consumers were finding different on-ramps to ancient exchanges, like buying stablecoin Tether (USDT) via over-the-counter deals.
According to native English-language news outlet world Times, China’s central bank, the People’s Bank of China (PBoC) — that imposed the 2017 ban — didn't expressly disagree with the Hangzhou decision.
“Indeed, Bitcoin is virtual property, however, it's not fiat money,” a PBoC official with the surname Li told the publication Friday.
The comments, however, come in stark distinction to the state’s perspective on Facebook’s Libra digital currency project, with officers saying they were involved and had even begun developing a digital currency of their own.
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