In a recent ruling, the Shanghai High Court stated that cryptoassets have “property attributes,” and Chinese law does not prohibit them outright. However, these protections only exist for crypto as a commodity, not as currency or business instrument.

These comments came in a fraud case involving two businesses and a failed token launch, and the Court condemned their actions in very strong terms.

China’s Harsh Crypto Policy

According to a new WeChat post, this ruling came adjacent to a dispute between an unnamed agricultural development company and an investment management firm, and an agreement to issue virtual currency.

“Raising so-called ‘virtual currencies’ such as Bitcoin and Ethereum from investors through illegal issuance and circulation of tokens…is essentially an act of illegal public financing without approval. Therefore, no organization or individual may engage in illegal token issuance and financing activities,” the High Court ruled.

However, this ruling was not the High Court’s only judgment on the case. Although it took a very harsh view of the core dispute between these two companies, the ruling stressed that these weren’t crypto’s only uses.

The Court claimed that cryptocurrency held value as a commodity, and no prohibitions exist on this usage.

China’s Changing Paradigm?

Since China’s 2021 Bitcoin mining ban, the international space has held a strong interest in bringing crypto back to this huge economy. Earlier this year, Go to Source to See Full Article
Author: Landon Manning