Crypto Ownership Legalized by Chinese Judge Cites ‘High-Pressure Crackdown’ On Speculation As Bitcoin Passes $97K
In the midst of Bitcoin’s BTC/USD record-breaking surge, a Shanghai court has ruled that the ownership of cryptocurrencies by an individual is not in violation of Chinese law.
According to the South China Morning Post, On Thursday, Judge Sun Jie of the Shanghai Songjiang People’s Court provided legal clarification for cryptocurrency owners in mainland China.
Sun stated in an article published on the Shanghai High People’s Court’s official WeChat account that it is “not unlawful for individuals to possess cryptocurrency,” despite the fact that the universal prohibition on cryptocurrency transactions established in 2021 continues to be in effect.
“That is why laws and regulations consistently enforce a high-pressure assault on speculative activities in cryptocurrency trading,” Sun stated, underscoring the distinction between holding and trading the asset.
As part of a case review that involved a dispute between two companies regarding an initial coin offering, which is unlawful in China, as well as cryptocurrency mining, this statement was made.
The complex background of China’s position on cryptocurrencies is the occasion for this legal clarification. The Asian giant’s continued influence over Bitcoin mining platforms is evident in the fact that China still controls over 50% of the global Bitcoin hash rate, despite a prohibition on cryptocurrency trading and mining.
In reality, there have been reports of a burgeoning trend among Chinese investors to seek alternative methods of participating in the cryptocurrency market, which has prompted inquiries regarding China’s true intentions.
In September, Zhu Guangyao, China’s former Vice Minister of Finance, recently encouraged the Xi Jinping administration to investigate cryptocurrencies in response to global shifts and policy modifications.
According to data from Benzinga Pro, Bitcoin, the world’s largest cryptocurrency, has surged past $97,000 to achieve a new record high. The judge’s opinion is timely. Since Donald Trump, a proponent of cryptocurrency, emerged victorious in the U.S. presidential elections, the trillion-dollar asset has experienced a 45% increase.
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