Chinese Court Ruling: Bitcoin is Legally Property
October 26 2018 - 1:48PM
InvestorsHub NewsWire
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Bitcoin Global News (BGN)
October 26, 2018 -- ADVFN Crypto NewsWire -- China continues to
flip its stance on whether or not it will allow Cryptocurrencies
from outright banning them on August 22nd of this year to stating
today that they should be defined and protected as property. Even
though the latest decision was not made by the highest level of the
Chinese government, it still has a strong basis due to the fact
that it was made by an International Arbitration court. These
courts typically are tasked with solving different sorts of
international business disputes, which according to today’s report,
includes Cryptocurrency deals between consumers.
Knowing this, one major question that is probably on the tip of
everyone’s tongue is: what does this mean for the legal and
regulatory future of Cryptocurrencies? In a general sense it does
not seem to mean much yet, beyond the fact that China is still
refusing to truly follow through on its ban. At the same time, it
could also be concluded that if other countries take this legal
decision as an example, they could use it as a basis for part of a
future regulatory framework. Even so, when it comes to what seems
to be China’s consistent inability to decide whether or not to
support Cryptocurrencies, such a possibility would seem to be very
much in the air.
What might help in terms of understanding China’s current situation
is to think about the fact that there is a difference between
Blockchain projects and Cryptocurrency projects. In a sense, it
comes down to the question: is the underlying coin a token or a
currency? In other words, does it drive usage of the product and or
is it simply some sort of asset? If something is a currency, it has
a different legal status then something that is fuel for an online
business. In China’s case, they seem to be treating the industry in
this way, at least for now.
Lending credence to this stance is the fact that the same
arbitration court mentioned above made it clear that just because
China’s ban truly encompasses trading Cryptocurrencies and running
ICOs, but not explicitly owning Crypto currencies. Inside of the
same ruling, they also specifically stated that Bitcoin does have
economic values and economic benefits.
As the year comes to a close, we will see if this ruling sways the
government in any sort of new direction with regards to its ban.
Even if it does not, the fact remains that China believes in the
potential of the Blockchain, as is evidenced by its wide ranging
investments into the technology this year.
By: BGN Editorial Staff
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