In China, a recent ruling by the Shanghai Songjiang People’s Court has established that cryptocurrencies are not illegal and have property attributes under Chinese law. However, their use is strictly limited to personal ownership and as commodities, not as legal tender or investment tools. This clarification was given by Judge Sun Jie while handling a case involving two companies disputing an initial coin offering, which is illegal in China.
Chinese law does not explicitly prohibit holding cryptocurrencies, but regulatory provisions from the People’s Bank of China and other authorities strictly control crypto-related business activities. Individuals can legally possess cryptocurrencies, but businesses face significant restrictions because they are prohibited from engaging in crypto investments, trading, or token issuance.
The crypto community has responded positively to this development, seeing it as a potential softening of China’s historically rigid stance on Bitcoin and other cryptocurrencies.
