Bitcoin payments in China are now legal.
In the past, cryptocurrency investors in China have been handling and trading virtual currencies with caution due to the government’s harsh stance on cryptocurrencies.
However, those involved with bitcoin can now flaunt their bitcoin ownership after the Shenzhen Court of International Arbitration ruled that bitcoin should be regarded as a property.
The ruling eliminates the fear that investors, both retail and institutional, had regarding owning and transferring bitcoin since regulations governing the finance sector in China was not entirely clear of how bitcoin should be treated.
A cryptocurrency researcher, Katherine Wu, on her Twitter post observed that “the official account of the Shenzhen International Court of Arbitration released an explanation on a recent share transfer dispute that involved bitcoin, bitcoin cash, and bitcoin diamond & determined that crypto is protected under China’s current property & contract law.”
The court observed that even though bitcoin does not possess the same features as government-issued currency, using it as a mode of payment is legal.
This allows merchants in China to offer crypto as a mode of payment in their stores without the fear of breaking any laws.
Katherine also noted that the arbitrator agreed that using bitcoin does not go against any laws since it has the features of a property, it’s economically viable to its owner, and can be “controlled by the owner,” as reported by CCN.
Even before the court’s ruling, Chinese traders and merchants had started using bitcoin and other cryptocurrencies as a mode of payment.
More Chinese firms have indicated that they will be accepting cryptocurrencies as a mode of payment in the near future.
As the popularity in cryptocurrency usage rises, governments in some Chinese cities have taken a different approach. To prohibit crypto-related events and discussions from taking place in areas under their jurisdiction.
With bitcoin payments in China being supported by law, do you think this will slowly open China to a bubbling crypto hub it once was?
Let us know your thoughts in the comments section below.