A crypto-related court case in China resulted in a ruling that cryptocurrencies are “not protected by law”.
This week, Chinese courts faced a plaintiff who invested over $10 thousand dollars in digital currencies, endorsed by his friends. However, due to the continuous crackdown on crypto imposed from the Chinese government, the accounts shut down.
The high court in the northern Shandong province made a public comment on the case and said, “cryptocurrency is not protected by law.” The court blanketed the case unworkable simply due to its dealing with crypto. Therefore, such a statement, which provides no help for the crypto industry seeking justice, potentially sets a precedent for courts throughout China. This puts crypto-related matters deeper in jeopardy within the jurisdiction of the People’s Republic of China.
Moreover, there are multiple court cases in China, which target those still trading digital currencies. One such case in Zhenjiang city, last week, involved eight people who used bitcoin coin to exchange for South African rand. The transaction skirted restrictions, however, authorities uncovered it later. Six of those eight might face jail time.
China’s crypto crackdown
This is the latest news to come out from China’s developing crypto situation. The Chinese government outlawed trading and financial payments tied to digital currencies years ago. However, recent crackdowns on crypto mining in the country sparked new disarray.
In May of this year the State Council’s Financial Stability and Development Committee, officially announced their crackdown on crypto mining. Following the announcement, miners started to flee the country. Some to North America, some to neighboring countries in Asia and even Russia.
Crypto businesses across the country face fines, imprisonment, and closure over high scrutiny from the Chinese government. Over the summer one of the oldest crypto exchanges pulled out of the Chinese market. BTCC started in 2011, though it left the Chinese market for Hong Kong.
Meanwhile, while the government pushes for tight regulations on outside crypto, their domestic projects take off. This past June the government announced $6.2 million in hand outs of the digital yuan. The disbursement happened in Beijing, the country’s capital, in a move to further adoption.
The crypto space continues to watch as China dismantles the international industry within its borders and builds its own crypto empire.
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