A text published in WeChata famous Chinese social network, emphasized last Monday (18) that the China’s Supreme Court Classified Cryptocurrencies Like Bitcoin as a “Commodity”that is, a commodity such as gold, oil and corn.
The case in question concerns the dispute between two companies that jointly planned to launch their own token in 2017, but which ultimately failed to launch, resulting in the lawsuit. In any case, what draws attention is the Court’s decision.
“After analysis, the court ruled that the issuance of tokens for financing, through the unauthorized sale and circulation of digital tokens, is an illegal fundraising practice”points to the text. Initial Coin Offerings (ICOs) have been banned in the country since 2017.
However, it is then noted that “Digital currencies, such as Bitcoin, are not prohibited by law”. In other words, it is not a crime to have Bitcoin in the country.
Colin Wua famous Chinese journalist, emphasized that the cryptocurrency industry in the country is under great pressure, making it difficult to see companies operating.
“The Shanghai High Court of China has declared that virtual currency, as a virtual commodity, has proprietary attributes and is not prohibited by Chinese law. However, commercial activities related to virtual currencies are strictly limited, and Chinese laws and regulations have always maintained a strict crackdown on virtual currency speculation activities.”
The Shanghai High Court has declared that virtual currency, as a virtual commodity, has proprietary attributes and is not prohibited by Chinese law. However, business activities related to virtual currencies are strictly limited, and Chinese laws and regulations are always…
— Wu Blockchain (@WuBlockchain) November 19, 2024
Since 2009, the China has banned Bitcoin and other cryptocurrencies several timesafter it was banned from being used by banks, brokerage accounts were frozen, brokers were banned and finally cryptocurrency trading was banned.
Executives believe that China should return to the cryptocurrency market in the coming years
Despite all this pressure on mainland China, other regions have already opened up to Bitcoin in the past year. The most explicit case is that of Hong-Kongwhich one approved BTC and ETH ETFs in Apriljust three months after the US approved its first ETFs.
Nasty Xiao FengCEO of HashKey Group, it is possible that China will reconsider its decision, especially after Donald Trump’s victory in the US elections.
“If the United States Congress and the [presidente] chosen to clearly define the policy on cryptocurrencies, continuously legislate and promote the industry, this would certainly be a driving force for China to accept this [as criptomoedas]”, he said Feng told the South China Morning Post.
“It may take China five or six years to accept this [negócios de criptomoedas] without these events happening. But now this period can be reduced to two years due to these factors.”
Thanks to you population of 1.4 billion inhabitants and your GDP of $18.5 trillionBeing the second largest economy in the world, China’s return could spark another major rally in Bitcoin.
This could also cause a dispute between them and the US, especially in the mining sector. Ultimately, this would be great for network security.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
