According to recent publications, a People’s Court in China published a study on the permissible use of digital assets, emphasizing that within the existing regulatory framework, digital items continue to be deemed to be legal property and therefore should be safeguarded by the legislation.
Crypto Considered as Property in China
A court in China conducted an analysis regarding these virtual assets’ illegal aspects and issued a report entitled “Identification of the Property Attributes of Virtual Currency and Disposal of Property Involved in the Case.”
Monetary Properties of Digital Assets
A local daily noted that this study recognised that virtual assets have monetary properties and are able to be categorized as property in China.
The research contends that under the present policy structure, virtual assets owned by people should be regarded as legal as well as secured by the law notwithstanding China’s blanket ban that all foreign digital assets are unlawful.
It is noteworthy to look at the fact that Chinese cryptocurrency dealers have consistently discovered a means to get around the government’s strict crypto rules. Contrary to popular belief, China’s mostly underground crypto industry is still flourishing despite the country’s broad ban on cryptocurrency use.
China Falls in and out of Love with Crypto
The report encompassed additional recommendations on how to handle violations concerning virtual assets and pointed out that since the assets and money cannot be seized, a combined approach blending both civil and criminal law must be used. To ensure an appropriate protection of personal property rights and social and public interests, such matters should be handled independently.
Crackdown on Crypto Firms
Bitmain, one of the biggest manufacturers of mining equipment, was recently accused of violating Chinese tax laws for which the local government reportedly imposed substantial penalties.
Bitmain was also a target of the blanket ban on all cryptocurrency-related operations in China as a consequence of the local government’s imposing of the ban in September 2021.
Earlier, Chuanguan, a representative of the China Electronics Standardisation Institute, said that the country’s technology standardization body intended to publish a national blockchain standard in 2022.