China has no reservation against ‘Bitcoin activities as virtual commodities,’ the Beijing Arbitration Commission (BAC) said in a report today. The report also added that the country’s laws and regulations ‘do not prohibit’ private possession and legal circulation of BTC.
Bitcoin Is Not A Currency, But A ‘Virtual Commodity’
Today local non-profit arbitration organization, the Beijing Arbitration Commission, pointed out in a report that Bitcoin cannot be used as a currency. It is not a legal tender and is not issued by China’s apex monetary authority.
Overall, BTC doesn’t share the same legal status as the country’s official fiat currency and cannot be used in financial transactions. This is a stance that the Asian nation has maintained since forever now.
On the bright side, according to the report, Bitcoin is a ‘virtual commodity.’ To quote the exact words:
The country does not recognize the identity of Bitcoin virtual currency, but recognizes it as a virtual commodity. Because the concept of virtual goods is larger than virtual currency, currency is a special kind of commodity. Bitcoin is not recognized as currency, but it is considered a commodity.
Also Not A ‘Virtual Property’ Either
The BAC’s report also states that Bitcoin does not fall under the category of a ‘virtual property either.’ Provisions in Article 127 of the ‘ General Principles of Civil Law’ protect data and network-related virtual properties.
But since, there are no ‘special provisions’ that cover virtual properties, and no law that covers BTC, the top cryptocurrency does not qualify as a virtual property in the country.
The “General Principles of Civil Law” does not make specific provisions on the extension and connotation of virtual property, but only stipulates that the protection of virtual property must be stipulated by law, and the specific protection measures of virtual property are entrusted to other laws. As my country currently has no laws on Bitcoin, it cannot be recognized as a virtual property in the General Principles of Civil Law.
But BTC Transactions Are ‘Legal And Valid’
Quoting a landmark judgment by the Shenzhen Court of International Arbitration, BAC’s report points out that Bitcoin transactions between individuals are not illegal. BTC transfers do not violate laws and regulations of the country.
Private possession and circulation of Bitcoin is not a crime, and that BTC ‘can be the object of delivery.’
This report comes amidst the arrest of the core team behind the notorious PlusToken scam in China earlier today. The country’s perspective towards Bitcoin came out as a sort of mixed in the BAC report.
But it is pretty much confirmed that the government doesn’t take too kindly to crypto perpetrators. And this is specified in the report as well. ‘Entrusted investments and contracts’ pertaining to Bitcoin are illegal.
Most of the entrusted investment judgments do not invalidate the entrustment contract, but point out that because the entrusted matter is not protected by law, the entrusted matter itself should be borne by the client for the part of the entrusted matter that the trustee has already completed in accordance with the agreement between the two parties. ; For the unfinished part of the trustee, the trustee will return the principal’s funds.
It seems the PlusToken scammers didn’t see that coming.