Despite Beijing imposing a widespread ban on cryptocurrencies in 2021, Chinese courts still declared cryptocurrencies to be legal assets. Furthermore, the court found that these assets were therefore protected by law and property rights.
This statement was made in a new report by the People’s Court of China. Additionally, the report delves into the legality of digital assets and how they interact with criminal law. Furthermore, it points out the difference between these assets and those under the current legal framework.
Chinese courts call for digital assets to be protected as legal assets
China’s digital assets industry has had quite a bumpy journey. Despite Beijing’s ban on digital assets, other industries are still looking to develop the sector in the country. Therefore, many people are looking to use Web3 technology to develop their digital infrastructure.
Now, despite the 2021 ban, a new report from a Chinese court says cryptocurrencies are legal assets. Furthermore, the report states that these assets are fully protected by property law. In fact, this point was also mentioned in the report “Determining virtual currency assets and handling assets related to the case”.
Specifically, the report discusses the economic quality of these digital assets. As a result, ODaily News reported the report’s author’s statement that these virtual currencies “remain legal assets and are protected by law.” Furthermore, the report recommends that despite the ban, digital assets held should still be considered legal tender and protected by property laws.
Additionally, the report recommends that currency crimes should be treated differently. That’s because the money or assets involved cannot be confiscated. Therefore, it is important to note that these cases need to be handled clearly, balancing public interests and private property rights.