Shanghai court recognized bitcoin as a unique digital currency

The Shanghai court of the middle instance recognized bitcoin as a unique digital asset, despite the Chinese ban on trading cryptocurrencies. 

The court assigned bitcoin the status of a different digital currency from the rest, because BTC:

• it has the properties of money, such as the ability to store, use as a means of payment and a unit of measurement of the value of goods and services;

• it is widely distributed all over the world;

• valued for a limited number of coins.

In China, cryptocurrencies are viewed as speculative investment vehicles. Therefore, the decision of the Shanghai court contrasts with the official position of the party. Based on the 2022 decision, the country's legislation is designed to ensure the interests of cryptocurrency owners in disputes related to the acquisition, mining or inheritance of coins.

Although this court decision does not change the status of bitcoin turnover in China and does not allow cryptocurrency trading, the recognition of BTC as a digital currency underscores its legal nature and indicates that within the framework of legal processes, coins are likely to be treated as virtual property.