Shanghai Court Clarifies Legal Status of Cryptocurrencies in China
A Shanghai court has issued a significant ruling that clarifies the legal status of cryptocurrencies in China. While upholding the country’s ban on crypto-related business activities, the court affirmed that individuals have the right to own cryptocurrencies as property. This landmark decision provides much-needed legal clarity in a country where crypto regulation is complicated. The ruling stemmed from a dispute between two companies over a failed token issuance project in 2017. The court invalidated the agreement between the companies, citing China’s prohibition on token issuance as an illegal financial activity. However, the court also explicitly stated that “it is not illegal for individuals to hold cryptocurrency.” China’s Complex Crypto Regulations This ruling highlights the nuanced approach China is taking towards cryptocurrencies. While recognizing their property attributes, the Chinese government maintains a strict ban on crypto-related business activities, including token issuance, exchange operations, and cryptocurrency mining. Such a stance reflects China’s concerns about financial stability and its efforts to curb illegal activities associated with cryptocurrencies, such as fraud and money laundering. However, the affirmation of individual ownership rights suggests a recognition of the growing importance of digital assets and their potential role in the future economy. A Global Perspective Meanwhile, the stance on cryptocurrencies in China stands in stark contrast with the more open approach taken by some other countries. For example, the recent re-election of a pro-crypto US president has fueled excitement and optimism in the global crypto market. Some have suggested the re-election is a trigger of a bull-run. Elsewhere, countries El-Salvador and the Central African Republic are using cryptocurrencies as their legal tender. Viewed from such a global perspective, China’s cautious stance introduces a new dynamic to the equation; one that encourages innovation while maintaining control. As the global crypto ecosystem continues to grow, China’s stance will undoubtedly play an important role in shaping the future of digital assets.
Crypto Market Surges as China Stimulates Economy with Debt Ceiling Hike
The crypto market is buzzing with renewed hope following China’s latest effort to introduce major economic stimulus measures. China recently announced raising its debt ceiling, and that may have jolted the global crypto market back to life. That is, after putting up what might be called a lacklustre display over the past few days. Bitcoin (BTC) led the rally, gaining over 3% and seen trading at $62,700 with a market cap of $1.239 trillion. The gains follow a week of volatility that saw the flagship cryptocurrency dip below the $60,000 mark due to rising U.S. inflation data. By deciding to increase its debt issuance, however, China may have just injected more liquidity into the global markets. This move appears to be driving the new optimism that is evident among investors. For China, its decision borders on the need of the government to boost economic growth and offer support to various sectors, including low-income citizens and the struggling property market. Bitcoin Whales and Altcoins Join the Rally As the recent surge in Bitcoin’s price suggests, there is an ongoing accumulation from large investors, otherwise known as whales. Since March, whales have added 1.5 million Bitcoins to their holdings, representing about 7% of the total supply. In addition to that, institutional interest is also currently on the high side, with Bitcoin exchange-traded funds (ETFs) now controlling more than 5% of the total supply. All these may be contributing to Bitcoin’s recent surge. However, Bitcoin is not the only beneficiary of China’s effort to boost the economy. Altcoins are also on hand and actively partaking in the market rally. Ethereum (ETH) has gained 1.65%, while Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) have all posted gains of around 3%. Analysts remain strong on the opinion that Bitcoin could reach $90,000 by the end of 2024. That is, considering that the global monetary supply (M2) continues to expand. More Optimism for The Crypto Market China’s finance minister, Lan Foan, has revealed plans for comprehensive debt issuance. However, there are no official statements as to the exact figures.Nonetheless, reports suggest that China may inject up to $283 billion into its economy.
Former Chinese Tycoon Sentenced to Six Years for $5M Crypto Fraud in Singapore
Yang’s entire business turned out to be nothing more than a front for a scam.
