Possession of Bitcoin still legal in China despite the ban, lawyer says


Despite enforcing a major cryptocurrency ban one year ago, the Chinese government still protects local crypto investors as crypto is recognized as virtual property protected by the law.One of the world’s most hostile countries toward Bitcoin (BTC), China has not yet banned the possession of cryptocurrencies, according to David Lesperance, founder of Lesperance & Associates law firm.Crypto holders in China are protected by the law in case of theft, misappropriation or breach of a loan agreement, Lesperance told Cointelegraph. He emphasized that crypto exchanges are still banned in China.The lawyer referred to a recent Chinese court case involving a breach of a loan made in the Litecoin (LTC) cryptocurrency. Defendant Ding Hao failed to fully pay back all 50,000 LTC that he borrowed from Zhai Wenjie in 2015, which became a major court precedent involving cryptocurrency in China.Since 2015, the price of Litecoin has jumped roughly 1,800%, as the cryptocurrency was trading at around $3 7 years ago, according to data from CoinGecko.On Aug. 31, the Beijing No. 1 Intermediate Court ruled that the defendant owed Zhai the remaining amount of Litecoin, rejecting Ding’s argument that the People’s Bank of China (PBoC) officially banned crypto transactions last year.“The court has upheld that cryptocurrencies like Litecoin are “property” even though they are created in the virtual realm,” Lesperance said. He emphasized that the crypto community “shouldn’t draw any particular positive inferences” from the case as it was a “very ordinary” commercial loan dispute th was settled under normal property law rules, stating:“To date, possession of crypto in China has not been banned. […] It does not make the commercial trading of this type of property legal, as the government has specifically banned crypto exchanges in China.”While Lesperance says that crypto exchanges are banned in China, some local crypto enthusiasts are confident that the PBoC has never explicitly banned individuals from trading cryptocurrencies.“It’s true that China doesn’t want individuals to trade crypto. But this is never being written in any formal document,” a person linked to the crypto industry in China told Cointelegraph.Related: Chinese mining giant Canaan doubles profits despite the blanket crypto banAccording to the source, many mainland users see their bank cards frozen if they use them for crypto over-the-counter (OTC) transactions. However, trusted OTC channels still allow crypto transactions in China.“So even though trading crypto is not illegal, we don’t want to waste our time arguing with banks because obviously, they think everything about crypto is illegal,” the person said.The latest news brings yet another piece of evidence that crypto has not been totally suppressed in China since the government announced a coordinated crackdown on crypto in September 2021. As previously reported, China returned its position as the second-largest Bitcoin hash rate provider as of January 2022.

Teresa Bach
Teresa Bach
Teresa is a crypto writer. She is interested in cryptocurrencies, technology, and in particular the subject of online security. An open supporter of freedom of speech, privacy, and equality for all. On a personal level, he likes to stay socially active, loves playing snooker, cricket, enjoys seafood, and loves listening to folk music.

Similar Articles

Most Popular

Huobi Partners With Tron To Launch First National Token DMC

Justin Sun, crypto mogul and founder of the Tron blockchain, has scored another coup. Sun announced a few hours ago that crypto exchange Huobi...

Ethereum Price Could Avoid a Major Drop if it Closes Above $1,250

Ethereum failed to clear the $1,250 resistance against the US Dollar. ETH is moving lower and might decline heavily if it breaks the $1,140...

Bitcoin price consolidation has shifted traders to these 4 altcoins

Bitcoin (BTC) has been trading in a tight range since Thanksgiving Nov. 24, as traders are uncertain about the next directional move. Usually, in...

Bitcoin Price Faces Rejection, Why BTC Could Resume Its Downtrend

Bitcoin price struggled to clear the $17,000 resistance. BTC seems to be forming a double top pattern and might dive below the $16,000 support. Bitcoin...

Ethereum Price Recovers But Bears Are Not Out Of The Woods Yet

Ethereum started a decent recovery wave above $1,150 against the US Dollar. ETH is now approaching a major hurdle near $1,230 and $1,250. Ethereum started...

Liquidity in DeFi – TheCryptoUpdates

Liquidity is a relative measure of how quick it is to trade one asset for another. The most liquid asset we know today is...

Litecoin hits fresh 2022 high versus Bitcoin — But will LTC price ‘halve’ before the halving?

Litecoin (LTC) has emerged as one of the rare winners in the ongoing cryptocurrency market meltdown led by the FTX exchange’s collapse.LTC price outperforms BTC,...

Bitcoin Price Trend Overwhelmingly Negative, Bears Target $13K

Bitcoin price extended losses and retested the $15,800 support. BTC could continue to move down towards the $15,000 and $14,000 levels. Bitcoin started a fresh...

Mattel Launches NFT Platform Via ‘Mattel Creations,’ Pivots From WAX To Flow Blockchain

Toy manufacturer Mattel is doubling down on their NFT pursuits, announcing the launch of NFTs on a new dedicated platform, ‘Mattel Creations,’ this week....

FTX bankruptcy filing details, Binance’s crypto industry fund and a U.S. CBDC pilot: Hodler’s Digest, Nov. 13-19

Coming every Saturday, Hodler’s Digest will help you track every single important...
bitcoin
Bitcoin (BTC) $ 16,942.73
ethereum
Ethereum (ETH) $ 1,272.29
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 301.81
usd-coin
USD Coin (USDC) $ 1.00
binance-usd
Binance USD (BUSD) $ 1.00
xrp
XRP (XRP) $ 0.403799
dogecoin
Dogecoin (DOGE) $ 0.105897
cardano
Cardano (ADA) $ 0.316508
matic-network
Polygon (MATIC) $ 0.872921
polkadot
Polkadot (DOT) $ 5.42
staked-ether
Lido Staked Ether (STETH) $ 1,256.87
litecoin
Litecoin (LTC) $ 78.43
shiba-inu
Shiba Inu (SHIB) $ 0.000009
okb
OKB (OKB) $ 21.36
dai
Dai (DAI) $ 1.00
tron
TRON (TRX) $ 0.054491
solana
Solana (SOL) $ 13.76
uniswap
Uniswap (UNI) $ 5.75
avalanche-2
Avalanche (AVAX) $ 13.01
chainlink
Chainlink (LINK) $ 7.44
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 16,925.31
leo-token
LEO Token (LEO) $ 3.81
cosmos
Cosmos Hub (ATOM) $ 10.46
ethereum-classic
Ethereum Classic (ETC) $ 20.13
monero
Monero (XMR) $ 140.35
the-open-network
The Open Network (TON) $ 1.72
stellar
Stellar (XLM) $ 0.089874
bitcoin-cash
Bitcoin Cash (BCH) $ 112.78
algorand
Algorand (ALGO) $ 0.246572
quant-network
Quant (QNT) $ 119.62
crypto-com-chain
Cronos (CRO) $ 0.064842
apecoin
ApeCoin (APE) $ 4.06
filecoin
Filecoin (FIL) $ 4.41
near
NEAR Protocol (NEAR) $ 1.72
vechain
VeChain (VET) $ 0.019170
hedera-hashgraph
Hedera (HBAR) $ 0.050499
flow
Flow (FLOW) $ 1.13
internet-computer
Internet Computer (ICP) $ 4.06
elrond-erd-2
MultiversX (Elrond) (EGLD) $ 43.15
frax
Frax (FRAX) $ 1.00
eos
EOS (EOS) $ 0.942128
terra-luna
Terra Luna Classic (LUNC) $ 0.000163
theta-token
Theta Network (THETA) $ 0.939453
chain-2
Chain (XCN) $ 0.043287
tezos
Tezos (XTZ) $ 1.01
the-sandbox
The Sandbox (SAND) $ 0.583993
aave
Aave (AAVE) $ 63.81
huobi-token
Huobi (HT) $ 6.84
lido-dao
Lido DAO (LDO) $ 1.14