Shanghai court recognises Bitcoin as property protected by law

The High Court of Shanghai классифицировал Bitcoin as a virtual asset with economic value that is protected by law.

«Relying on established practice, the People’s Court has recognised that Bitcoin meets the attributes of property and possesses a certain economic value. For its protection, legal norms must be applied», the document states.

The statement concerns a case involving Chen Mou, who on 10 October 2020 filed a suit in Shanghai’s Baoshan District People’s Court against the defendant Shi Moumou seeking the return of 1 BTC.

After the proceedings on 23 February 2021, the court ordered the defendant to return the coin within ten days of the judgment. However, she refused to make the payment, prompting the plaintiff to pursue enforcement through the courts. Subsequently, the Baoshan Court arranged mediation between the two sides.

Liu Yan, an expert at Beijing’s Deheng Law Firm, told Bitcoin.com that the High Court’s declaration would be used as a precedent in civil disputes related to Bitcoin.

As reported in September 2021, the People’s Bank of China, together with nine state bodies, published a statement classifying cryptocurrency operations as illegal financial activity.

In 2019, a similar status of virtual property was conferred on Bitcoin by the Hangzhou city court.

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