The plaintiff lost over $10,000 in 2018 amidst the Chinese Central Bank’s ban on financial institutions supporting crypto transactions
The High Court of China’s Northern Shandong province has publicly stated that investments in digital assets like cryptocurrencies are not protected by the law. The comment was made while the bench was reviewing the decision of the Jinan Intermediate Court on a fraud allegation involving virtual tokens.
The development is the latest setback for China’s crypto investment industry as the ruling sets a precedent for outlawing investment in digital assets like Bitcoin.
The plaintiff initially approached the Jinan city court claiming that he invested more than $10,000 to buy digital currency in 2017 on the advice of three friends.
However, the accounts that the plaintiff was transferring the funds to were closed down by the People’s Bank of China in its implementation of the ban on financial institutions supporting crypto transactions in 2018. This led to the plaintiff’s money getting stuck in the process, leading to him not receiving the money or the tokens.
The Jinan city court refused to grant relief to the plaintiff in January 2021, stating that the fraud allegation was untenable as digital assets had no legal status. The Jinan Intermediate Court upheld the verdict in March 2021, prompting the plaintiff to approach the Northern Shandong High Court. However, the high court reaffirmed the lower courts’ position and said in a public comment on the case that “investing or trading cryptocurrency isn’t protected by law”.
The statement by China’s judicial system comes just months after the nation began a crackdown on crypto-centric businesses and outlawed mining, prompting the country’s crypto mining industry to move to Africa and Central Asia.
While the above case did not lead to further legal action against the plaintiff, in a separate case in Zhenjiang city, eight individuals were arrested after they used Bitcoin to override the restrictions of withdrawing only $50,000 worth of foreign currency per year. The court stated that the Bitcoin exchange scheme where individuals use Bitcoin as a medium to exchange yuan with other fiat currencies like the South African rand resulted in transactions worth more than 1.4 billion yuan since 2019. Six of the accused were sentenced to prison as the investigation continues.
Such cases feed into the perception that the use of digital currency is prominent in committing crimes and further prompt stricter regulations by the historically crypto-adverse Chinese government.
The plaintiff misplaced over $10,000 in 2018 amidst the Chinese language Central Financial institution’s ban on monetary establishments supporting crypto transactions
The Excessive Court docket of China’s Northern Shandong province has publicly acknowledged that investments in digital property like cryptocurrencies usually are not protected by the regulation. The remark was made whereas the bench was reviewing the choice of the Jinan Intermediate Court docket on a fraud allegation involving digital tokens.
The event is the most recent setback for China’s crypto funding trade because the ruling units a precedent for outlawing funding in digital property like Bitcoin.
The plaintiff initially approached the Jinan metropolis court docket claiming that he invested greater than $10,000 to purchase digital forex in 2017 on the recommendation of three mates.
Nevertheless, the accounts that the plaintiff was transferring the funds to have been closed down by the Folks’s Financial institution of China in its implementation of the ban on monetary establishments supporting crypto transactions in 2018. This led to the plaintiff’s cash getting caught within the course of, resulting in him not receiving the cash or the tokens.
The Jinan metropolis court docket refused to grant aid to the plaintiff in January 2021, stating that the fraud allegation was untenable as digital property had no authorized standing. The Jinan Intermediate Court docket upheld the decision in March 2021, prompting the plaintiff to method the Northern Shandong Excessive Court docket. Nevertheless, the excessive court docket reaffirmed the decrease courts’ place and mentioned in a public touch upon the case that “investing or buying and selling cryptocurrency isn’t protected by regulation”.
The assertion by China’s judicial system comes simply months after the nation started a crackdown on crypto-centric companies and outlawed mining, prompting the nation’s crypto mining trade to maneuver to Africa and Central Asia.
Whereas the above case didn’t result in additional authorized motion towards the plaintiff, in a separate case in Zhenjiang metropolis, eight people have been arrested after they used Bitcoin to override the restrictions of withdrawing solely $50,000 value of overseas forex per yr. The court docket acknowledged that the Bitcoin change scheme the place people use Bitcoin as a medium to change yuan with different fiat currencies just like the South African rand resulted in transactions value greater than 1.4 billion yuan since 2019. Six of the accused have been sentenced to jail because the investigation continues.
Such instances feed into the notion that the usage of digital forex is outstanding in committing crimes and additional immediate stricter rules by the traditionally crypto-adverse Chinese language authorities.