Bitcoin gains legal recognition as digital currency in Shanghai, China

The Shanghai No.2 Intermediate People’s Court in China has reportedly recognized Bitcoin (BTC) as a unique and non-replicable digital asset while acknowledging its scarcity and inherent value.

The Chinese court released a report on Sept. 25 discussing the development of internet technologies. The report stated that with the development of internet technology, digital currencies such as Bitcoin stand out as unique and non-replicable. The report states that among a sea of digital currencies, Bitcoin is different and unique from other digital assets.

The report also sheds light on some of the unique properties of Bitcoin, including its scarcity and property attributes. The report states that Bitcoin has key currency features such as scalability, ease of circulation, storage and payment. Bitcoin continues to see global usage despite its decentralized nature and lack of central authority administration.

The latest judicial report acknowledging Bitcoin and its attributes as an asset class gives Bitcoin and other digital currencies in China more legitimacy. Despite a blanket ban on cryptocurrencies in China, legal arguments for defining bitcoins as personal property have gained a lot of traction from the local Chinese courts.

The latest recognition from one of the key courts in Shanghai comes despite the hostile attitude of the Chinese government toward Bitcoin. China imposed a blanket ban on all forms of cryptocurrency activities, including Bitcoin mining, in 2021. However, several courts in China have recognized Bitcoin and other digital assets as legal properties protected by law.

Related: China announces plans for new national financial regulator

As Cointelegraph reported on Sept. 1, a People’s Court in China released a report assessing the legality of virtual assets and analyzing the criminal law attributes of these assets. The report observed that digital assets qualify as legal property and thus are protected by the law.

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