China’s Lifting of Bitcoin Ban is Fake News

The news reports circulating that China has recalled its Bitcoin trading ban are not true and are a result of misinterpreting facts.

Sorry, but the reports circulating that China has finally lifted its ban on Bitcoin trading is not accurate.

Contrary to several media reports, including from a cryptocurrency-focused online publication with the banner: China Lifts Bitcoin Ban; Individuals and Businesses Can Now Own Cryptocurrencies Legally as well as tweets and statements by public figures, the report that Beijing has backtracked from its moratorium on Bitcoin trading is actually a misinterpretation of a ruling by a Shenzen court.

A Twitter post by user @katherineykwu (Katherine Wu) stated: 

Unfortunately, the above tweet also created some confusion with many journalists and personalities thinking the more than one year of Bitcoin ban in China has ended, resulting to investors rushing to buy Bitcoin in the hope of gaining profits.

But it was actually based on the October 25 court ruling of the Shenzhen Court of International Arbitration (SCIA) declaring Bitcoin as a property and not as currency, citing existing laws of the People’s Republic of China. The decision makes it legal for Chinese citizens and merchants to transfer and own digital currencies.

The decision said:

"Although Bitcoin may not be legal currency, that does not prevent it from being protected by law as a property," said SCIA in the released case analysis. "The Party contends that Bitcoin has characteristics of a property (SOV) that can be controlled by the owner; it has economic value and can bring economic benefits to the owner. This does not break any laws. This arbitrator agrees."

In July this year, the Hangzhou Internet Court, which specializes in Internet-related cases, had issued a ruling allowing blockchain-enabled documents to be accepted as evidence in a copyright infringement case.

The ruling said, "it should maintain an open and neutral stance on using blockchain to analyze individual cases.”

Reading now