China has no reservations against "Bitcoin's activities as virtual products," the Beijing Arbitration Commission (BAC) said in a report today. The report also added that the country's laws and regulations ‘do not prohibit’ private possession and legal circulation of BTC.
Bitcoin is not a currency, but a virtual virtual merchandise ’
A few days ago, the local non-profit arbitration organization, the Beijing Arbitration Commission, noted in a report that Bitcoin cannot be used as a currency. It is not a legal tender and is not issued by China's highest monetary authority.
In general, BTC does not share the same legal status as the country's official fiat currency and cannot be used in financial transactions. This is a position that the Asian nation has always maintained.
On the positive side, according to the report, Bitcoin is a "virtual commodity." To quote the exact words:
"The country does not recognize the identity of Bitcoin's virtual currency, but recognizes it as a virtual commodity. Because the concept of virtual goods is larger than virtual currency, currency is a special type of merchandise. Bitcoin is not recognized as a currency, but is considered a commodity. "
Nor is it a virtual virtual property ’
The BAC report also states that Bitcoin is also not included in the virtual virtual property ’category. The provisions of article 127 of the “General principles of civil law” protect data and virtual properties related to the network.
But since there are no "special provisions" covering virtual properties, and no law covering BTC, the top cryptocurrency does not qualify as virtual property in the country.
The “General Principles of Civil Law” do not establish specific provisions on the extension and connotation of virtual property, but only stipulates that the protection of virtual property must be stipulated by law, and specific protection measures for virtual property are they trust other laws. . Since my country currently does not have Bitcoin laws, it cannot be recognized as virtual property in the General Principles of Civil Law.
But BTC transactions are 'legal and valid'
Citing a landmark ruling from the Shenzhen International Arbitration Court, the BAC report notes that Bitcoin transactions between individuals are not illegal. BTC transfers do not violate the laws and regulations of the country.
Private possession and circulation of Bitcoin is not a crime, and that BTC "may be the subject of delivery."
This report comes amid the arrest of the core team behind the notorious PlusToken scam in China recently. The country's perspective towards Bitcoin came out as a kind of mix in the BAC report.
But it is quite confirmed that the government is not too kind to cryptocurrency perpetrators. And this is also specified in the report. The ‘investments and entrusted contracts’ related to Bitcoin are illegal.
“Most entrusted investment lawsuits do not invalidate the entrustment contract, but point out that because the entrusted matter is not protected by law, the client must assume the entrusted matter for the portion of the entrusted matter that the administrator has already completed in accordance with the agreement between the two parties; For the unfinished part of the administrator, the administrator will return the director's funds. ”
It seems like the PlusToken scammers didn't see that coming.