The Arbitration Court in China ruled that, despite the country’s Central Bank’s ban on trading in cryptocurrencies, Bitcoin must still be legally protected as citizen’s property.
The Shenzhen Court published the details of the case through WeChat, stating its decision on a recent economic dispute concerning a business contract involving the possession and transfer of crypto-active assets. According to the analysis of the case, the unnamed plaintiff signed a contract with the defendant, which allowed the latter to trade and manage the cryptocurrency pool.
However, the plaintiff stated that the defendant did not fulfill his obligations and refused to return the cryptocurrency in the agreed time. As a result, he went to court with a claim for the return of assets with interest. It was about the property, which is estimated at nearly 500 thousand US dollars.
The judge noted that the essence of the case lies in the contractual obligation to return the cryptocurrency, which does not fall under the category of cryptocurrency trading or the initial offer of coins set forth in the prohibition of the National Bank of China.
The arbitrator said that currently in China there is no law prohibiting the possession of Bitcoin and its transactions between individuals. The court concluded that in any case, even if Bitcoin is not legal tender, this does not affect the fact that the possession of a cryptocurrency should be legally protected on the basis of China’s contract law.
“Bitcoin, first of all, is a form of property that provides economic values and benefits,” the court added.