Bitcoin is Now Recognized as a Unique Digital Asset in Shanghai
- The Shanghai People’s Court has officially recognized Bitcoin as a unique and non-replicable digital asset.
- Tron founder Justin Sun brought attention to a report by Shanghai No. 2 Intermediate People’s Court.
- The court states that BTC has key attributes such as scalability, storage, payments, and ease of circulation.
- It suggests that in cases of disputes concerning theft or ownership, BTC can be regarded as personal property.
A recent announcement by the Shanghai People’s Court in China has officially recognized Bitcoin as a unique and non-replicable digital currency. This acknowledgement comes amid the country’s strict ban on digital assets.
Tron founder Justin Sun brought attention to a report by Shanghai No. 2 Intermediate People’s Court issued on September 25. The Chinese court mentioned the specific attributes of BTC, highlighting its scarcity, inherent value, and global acceptance.
The report stated that in the era of internet technology advancement, BTC shines as a unique and non-replicable digital asset. It particularly underlined that among the multitude of digital currencies, Bitcoin is different and incomparable.
The local court states that Bitcoin possesses key currency attributes such as scalability, storage, payments, and ease of circulation. It highlights that BTC maintains its global utility and adoption despite the lack of central authority oversight.
The court suggests that in cases of disputes concerning theft or ownership, BTC can be regarded as personal property, acquired through various means like purchase, mining, or inheritance. It states:
“[Bitcoin] can be obtained through labor production “mining” based on the original acquisition basis of property rights, or it can be obtained through inheritance such as buying and selling, giving, etc.”
Notably, the recent judicial report does not signify an official policy shift. However, it gives Bitcoin more legitimacy in the country. Notably, several local courts have spoken in favor of defining BTC as personal property despite a blanket ban by the government.
This report follows a previous ruling by a Shanghai court in May 2022, which also recognized bitcoin’s legitimacy. It stated that the country’s laws are capable of protecting bitcoin holders, even amidst the trading ban.
As reported earlier by BitcoinWisdom, Shanghai authorities released a report containing their plan to explore the metaverse sector within the next three years. Part of the authorities’ plans is to establish over 100 companies that will have a mastery of the core metaverse technologies. Also, it plans to develop 10 “chain owner” firms that can compete with any other similar companies globally.