CHINESE COURT RULES THAT BITCOIN IS PROPERTY, PROTECTED BY LAW
In a case of a court in Shenzhen City in southern China, a company engaged in a secret dispute has set an important legal example to repay the value of cryptocurrency, which misused it. In doing so, it is recognized that cryptocurrency have economic value in the form of assets and thus are protected by law.
This company is A, B, C and D
The Shenzhen International Court of Arbitration heard the case of involving A, B, C and D companies. The company owns A Company B, and agreed to sell 5 percent of the company C for 550,000 Yuan. Under the terms of the deal, Company C paid 250,000 Yuan directly to Company A, and had to pay the rest using the benefit made by the Company D Company, from the management of some cryptocurrency, given the cryptocurrency to C. Return the money to D, and use the benefit to complete the transaction with A.
Refuse to pay the second part of the transaction and re-captured the deal. A and D filed a lawsuit, demand for compensation of 20.13 bitcoin, 50 bitcoin cash, and 12.66 bit Coin Diamond, overall, is estimated to be approximately $ 493,000.
This dish is a dishonest
C did not deny the failure to respect the contract, but argued that the contract was invalid. In the form of evidence, it restricts the practice of collecting money with the initial coin offer with the law passed in September 2017 by the Chinese government. C claimed that the law effectively means that the transfer of digital assets in any way is illegal, which means that the written agreement was not valid.
There was not enough to prevent cryptocurrency from taking first place, no one could help thinking. The court obviously thought that too; the ruling came that if the two sides signed the contract, then those parties indicated that they want to respect that contract, and it is legally binding. Even so, this contract is a completely civil affair of the law. The court ruled that C failed not only to respect the contract but also "violated the principle of honesty".
Qi Aimin of the University of Guangzhou told QQ that this is the first time Chinese officials have ratified Bitcoin trade contracts.
Its property rights
A more important court verdict for the cryptocurrency industry in China is that the Bitcoin is not money, and it should not be used as money or used, the law does not prevent private property from executing private properties using these properties. The fact is that bitcoin is not a Fiat money; it does not mean that it should not be preserved as a personal property.
It’s harvesting in its own loop hole; In the case of compensation, Company B argued that from 1, bitcoin is legally protected as property; 2, the company does not want to transfer coins to break the law; And 3, the prices of cryptocurrency generally are listed in US Dollars, company C should award the outstanding amount to US $ in Company B.
Company C argued that there is no legal pricing method or business place in the virtual currency, so the claim of B is illegal and inappropriate.
Once again, the court did not buy it. The work of signing the original agreement revealed that C understood that economic value of bitcoin was. In order to respect commitments in good faith, the parties to the contract are required.
Company B used okcoin.com to estimate the cost of cryptocurrency; C once again claimed that the claim is that the website is illegally operating in China. The court ruled that its value does not affect the accuracy of the estimates, which are public data.
Finally, the court noted that no interest should be given on the assets, because they are not fiat money issued by monetary authorities.
Before you can take it before you decide
In 2016, a California judge decided that Bitcoin was the property to be able to seize the property from the bankrupt Bitcoin mining firm and in May 2018 the South Korean Supreme Court had to make the same decision to get its hands. It’s owned by a guilty pedophile on 1 bitcoin.
In China, the government banned the ICO, Cryptocurrency Exchange and Bitcoin mining till the beginning of 2018, despite the fact that it was the major economy in crypto conditions so far.
The Government is still excited about Blockchain Technology and is promoting its use. But in October, a new draft regulation was published which would strip the blockchain users of the ability to operate anonymously, and companies would need to maintain user data for up to six months.