Chinese Court Declares Cryptocurrency Transactions Illegal
From now on, investing or trading in cryptocurrency is not protected by the national law of the People's Republic of China. This decision was announced by the Shandong Provincial High Court.
The decision was announced in a 2017 case in which the plaintiff transferred 70,000 yuan (about 10,750 USD) to three defendants to buy digital assets. Soon, the government banned cryptocurrency trading in pairs with the national currency and blocked the accounts.
In January 2021, the Jinan Metropolitan Court ruled that the plaintiff's allegations of fraud were unfounded. This is because digital currencies in China do not have a clearly established legal status and the plaintiff also broke the law.
As a result, the Supreme Court pointed out that "investing or trading in cryptocurrency is not protected by law."
Chinese authorities are showing an increasingly firm stance on cryptocurrency. While bitcoin (BTC) ownership remained legal in China despite the massive crackdown that took place in September 2017, many investors and miners continued to be in the country. But in recent months, the government has increasingly sought to stamp out mining and cryptocurrency transactions. This has led to reports of miners moving overseas and seeking more loyal jurisdictions.