Chinese Businesses Can Accept Bitcoin And Cryptocurrencies According To Court Ruling

A report by local media outlet CnLedger revealed that merchants in China are legally allowed to accept Bitcoin and other cryptocurrencies as a means of payment.

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A report by local media outlet CnLedger revealed that merchants in China are legally allowed to accept Bitcoin and other cryptocurrencies as a means of payment.

The Internation Arbitration Court of Shenzhen recognized, in a recent ruling, that Bitcoin is to be recognized as property and that individuals and commerces can own and exchange Bitcoin while abiding by current regulations.

Bitcoin should be regarded as a property

Cryptocurrencies have been handled with caution in the country due to crackdown and harsh stance by the government regarding them. However, things have changed as Bitcoin and other cryptocurrencies can now be used legally as a method of payment by merchants.

This latest development comes after the Shenzhen Court of International Arbitration ruled cryptocurrencies should be regarded as properties.

The court officially recognized that individuals and businesses can accept Bitcoin as a means of payment all while within the confines of the current government regulations.

According to the report, the court stated that Bitcoin is protected by the law. According to the ruling made by the court, owning and transferring Bitcoin is not forbidden in China as they are protected by the law since they are regarded as properties.

The ruling is a favorable one as it eliminates the fears of both retail and institutional investors regarding holding and transferring cryptocurrencies in the country.

Following the ruling of the Shenzhen court, cryptocurrency researcher Katherine Wu analyzed the situation on Twitter.

Wu stated that the official account of the Shenzhen International Court of Arbitration made known its position following a recent transfer dispute involving Bitcoin, Bitcoin cash and Bitcoin Diamond.

The court determined that cryptos are protected under the country’s current property and contract law, she added.

Wu noted that the decentralized state of cryptos provide the users with a high level of financial freedom and being economically viable to the owner, thus the reason why it is regarded as a property.

Wu further added that the Party argued that Bitcoin has features of a property (SOV), can be held and controlled by the owner at will and holds economic values to the user. Due to that, it doesn’t break any laws, a point that the court agrees with.

The court noted that even though Bitcoin and other cryptos do not possess the same features as government-issued currency, it is not illegal to use them as a means of payment so long as the receiving party agrees.

This latest development means that merchants in China can now accept cryptocurrencies as a legal means of payment without fear of breaking any government law.

Chinese businesses accepting Bitcoin even before the ruling

Even though this ruling by the arbitration court is a favorable one, there are some firms and businesses in China that are already accepting Bitcoin as a means of payment.

Beijing Sci-Tech Report (BSTR), which is the country’s oldest technology publication revealed earlier this month that it would soon start to accept Bitcoin from customers who wish to pay for a yearly subscription using that method.

The publication stated that this move is to encourage the use of blockchain and Bitcoin. They further added that their yearly subscription would be around 0.01 BTC, worth around $65. If the BTC increases before then, the publication will compensate its customers.

There are also some hotels and event centers that are already accepting cryptos as a method of payment.

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