According to CnLedger, China’s trusted cryptocurrency news outlet, the country’s merchants can accept Bitcoin as a legal payment method.
According to local reports, the Shenzhen International Court of Arbitration has Bitcoin as an asset. Its formal recognition allowed individuals and businesses to own and transfer Bitcoin without conflicting with current financial regulations.
“Chinese court confirms that Bitcoin is protected by law. Shenzhen International Court of Estimation administered a case involving cryptos. The content of the decision was as follows: CN law does not prohibit buying and transferring Bitcoin, which must be protected by law due to its asset nature and economic value.”
Bitcoin Is Not Illegal To Circulate In China And As A Mode Of Payment
Katherine Wu, a crypto researcher at Messari, translated and analyzed documents published by the Shenzhen International Court of Arbitration to examine the reasoning behind the court’s judge’s assessment of Bitcoin as an asset.
In general, due to the decentralized nature of Bitcoin, which provides financial freedom and economic value to its holder; He explained that Bitcoin can be considered an asset.
Wu said, “The party claimed that Bitcoin has the characteristics of an asset, can be controlled by its owner, has economic value, and does not neglect any laws.. The judge agreed.” said.
Thus, the court, regardless of the legality of Bitcoin and other major cryptocurrencies; He stressed that the circulation and use of Bitcoin as a form of payment is not illegal. This means that merchants will be able to freely accept cryptocurrencies as a payment method without neglecting local laws.
“In the judge’s opinion, whether Bitcoin is legal or not; circulation and payment is not illegal. Although Bitcoin does not have the same rights as fiat money; Owning or paying with cryptocurrency doesn’t mean it’s illegal.”
Earlier this month, Beijing Sci-Tech Report, China’s oldest tech publisher and a nationwide respected media company ( BSTR), to promote the practical use of the dominant cryptocurrency and the use of blockchain; Announcing its plan to accept Bitcoin as a form of payment for its annual subscriptions.
BSTR announced that from 2019, the annual subscription of the magazine will be sold for 0.01 BTC, or approximately $65.. The publishing company stated that they will compensate their customers if the price of Bitcoin rises significantly in the future.
Many hotels in China’s major cities have also started to accept cryptocurrencies.. The name of one of these hotels is the Ethereum Hotel, which provides various advantages and discounts to those who use Ethereum.
So What Do They Show About China?
China’s optimistic attitude towards blockchain technology and this by government institutions Considering the positive comments made for the sector; It has become more prominent that the government has imposed a total ban on cryptocurrency trading to curb the devaluation of the Chinese Yuan and limit speculation in the market.
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CCN- Joseph Young