Bitcoin (BTC/USD), Litecoin (LTC/USD) – Despite Ban, Chinese Court Rules People Can Trade Cryptocurrency – But There’s a Catch

Bitcoin (BTC/USD), Litecoin (LTC/USD) – Despite Ban, Chinese Court Rules People Can Trade Cryptocurrency – But There’s a Catch

Despite China’s ban on digital asset services, a Chinese court has ruled that its people may continue to trade cryptocurrencies.

Notably, China has already banned cryptocurrency trading, claiming there is a risk to the stability of the financial system.

according to Rule At the First Intermediate People’s Court in Beijing, only interested investors may trade cryptocurrencies, which should be considered virtual assets rather than a form of fiat currency.

The decision was reached in a case involving A Litecoin LTC / USD A loan with the promise of receiving interest payments in other digital currencies.

According to the case details, Chai Wenji lend a friend Chai Wenji 50,000 litecoins in 2015.

Hao denied Wenjie’s claim that he pledged to pay 1,000 Litecoins in interest each month.

Currency status for Litecoin

The court acknowledged the current restrictions on cryptocurrency trading in China, but the chief judge pointed out that Litecoin cannot be considered a form of payment.

The judge stated that cryptocurrency lacks support from regulatory and financial structures, and noted that digital assets are not issued by a monetary authority.

The court ruled that “according to real administrative regulations and issues, our country only denies the monetary features of virtual currency and prohibits its circulation as currency, but virtual currency itself is a virtual property protected by law.”

Notably, Litecoin was taken into account by the court despite the country’s rules governing these assets and the current ban on it Bitcoin Bitcoin / US Dollar.

A judge ordered the defendant to return Litecoin after finding that the plaintiff had provided evidence that the defendant had borrowed cryptocurrency.

Chinese policy regarding cryptocurrency

The ruling is similar to that of a Chaoyang-based court recently, which instructed companies not to pay wages Rope USDT / USD Due to restrictions on the transfer of digital assets.

It is important to note that several Chinese regional courts have issued various rulings regarding the handling and trading of digital assets.

For example, the Shanghai Supreme People’s Court decided that Bitcoin has a “certain economic value” and is protected by national law.

Despite the Chinese government’s crackdown on crypto activity, which includes a ban on all cryptocurrency trading announced in September 2021, the country is particularly strong in the use of centralized services, ranking second overall in strength-adjusted transaction volumes. Purchasing at both the wholesale and retail levels. levels, according to the latest Statistics.

Are you ready for the next round in the cryptocurrency space? Be prepared before it happens! Hear from industry thought leaders like Kevin O’Leary and Anthony Scaramucci at 2022 Benzinga Crypto Conference On December 7th in New York City.

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