Bitcoin is a virtual property in China

Bitcoin is virtual property in China - Bitcoin legal in China

Many observers look with great interest at China, considered one of the crucial junctions for the future of cryptocurrencies. In fact, after having long opposed digital assets, considered dangerous for the stability of the global financial system, the Asian country seems to have changed its orientation over the past few months. In particular, the Beijing government reacted with extreme concern to the now coming of Libra, the Facebook stablecoin that seems to raise quite a few fears in political and monetary institutions all over the world. Concerns which have gone so far as to put a virtual uniform in the yard which would be entrusted with the task of going to propose as an alternative to the Menlo Park cruptocurrency.
The eyes of the Chinese authorities, however, in addition to Libra continue to focus on Bitcoin, which despite the official announcement going back to the 2017, continues to be very busy in the country. Obvious sign that the virtual currency attributed to Satoshi Nakamoto has managed to find alternative channels to the exchanges operating on the territory of the People's Republic.

The opinion of the Hangzhou Internet Court

Just about BTC, on July 18 saw theHangzhou Internet Court give life to a sentence that has not failed to arouse a certain amazement, precisely in consideration of the lack of favor which it enjoys in China, at least at an institutional level. In practice Bitcoin has obtained, and it is the second time that happens, legal recognition, coming equated to a legal property. Second I went to Wan, a trader who is used to following this kind of story, the ruling came to the conclusion of a dispute between an exchange that is now closed and one of its users, hit by the loss of its funds as a corollary of the event. It was Dovey Wan herself who highlighted the historical scope of the sentence in a tweet, stating that it would in practice sanction Bitcoin's total legality in China.

The reaction of the People's Bank of China

The Hangzhou ruling was also commented on by the People's Bank of China, attentive to everything related to Bitcoin and Altcoin on the national territory. It was in particular an exponent of the central banking institution to affirm how Bitcoin certainly represents a virtual property, but at the same time it is not real money. A fairly nuanced position, which has however been interpreted by many analysts as the clearest sign of the fact that, at least at this time, the queen of cryptocurrencies is considered a considerably less problem than that represented by Libra.
It should also be stressed that in fact sources from within the People's Bank of China had already remembered for some time that if BTC cannot be treated as a financial asset, at the same time it is to be considered in all respects an absolutely legal property. A clear position this time, expressed in the past month of May by You know Xiao, member of the board of directors of the central bank and its legal department and reported by thecnLedger Twitter account.