China's People's Court has issued a report on the legal status of virtual assets, delving into the criminal law attributes of these digital holdings. The report unequivocally states that within the current legal and policy framework, virtual assets are deemed legitim ate property and are entitled to legal protection.
The People's Courts in China wield autonomous judicial authority, free from influence by administrative bodies or social organizations. They preside over a wide range of cases, encompassing criminal, civil, administrative, and financial disputes.
Despite China's comprehensive prohibition of foreign digital assets, the report asserts that virtual assets owned by individuals should be regarded as legal and safeguarded by law, given their economic attributes. The report also offers recommendations for addressing virtual asset-related crimes, emphasizing the need for harmonizing criminal and civil laws in cases where assets and money cannot be confused. This approach seeks to strike a balance between safeguarding personal property rights and serving broader social interests.
China's stance on cryptocurrencies has been marked by a blanket ban on all crypto-related activities, including foreign exchanges providing services to mainland residents. Nonetheless, Chinese courts have demonstrated a contrasting perspective on digital assets over the years. Th is divergence became evident in 2022 when It was confirmed that cryptocurrency holders in China are legally protected against theft, embezzlement, and breaches of loan agreements, despite the cryptocurrency ban. Moreover, a Shanghai court recognized Bitcoin as virtual property in May 2022, grant ing it the protection of property rights.
China's relationship with Bitcoin and cryptocurrencies has experienced fluctuation, with a recent recurrence in Bitcoin mining within the country, signifying a potential softening of its stance.
