China's Shenzhen Arbitration Court Deems Bitcoin As Property Which Deserves Legal Protection

in #china6 years ago (edited)

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PHOTO SOURCE: COINDESK.COM

In a dispute involving a business contract detailing the possession and transfer of crypto assets, China's Shenzhen Court of International Arbitration ruled in favour of the plaintiff, highlighting that the defendant had failed to fulfill the contractual obligation to return the cryptocurrencies after an agreed deadline, according to Coindesk.

Coindesk reported that the case analysis was published on Wechat yesterday, and described a case whereby the plaintiff signed a contract with the defendant, allowing the latter to trade a pool of cryptocurrencies- bitcoin, bitcoin cash, and bitcoin diamond- on the former's behalf, before returning them after a stipulated deadline.

After the deadline, however, the defendant refused to return the cryptocurrencies, arguing in the arbitration court that the People's Bank of China (PBoC) had banned the trading of cryptocurrencies in September 2017, thus rendering the contract null and void.

The arbitrator disagreed with the defendant, stating that China's laws do not forbid the ownership of bitcoin and its transfer between individuals.

The court concluded that "bitcoin has the nature of a property, which can be owned and controlled by parties, and is able to provide economic values and benefits."


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