The Shenzhen Court of International Arbitration in China has ruled that in spite of the RBI ban on cryptocurrency trading, bitcoin valuable property and should still be protected with economic values according to Chinese law.
The Court issued case scrutiny via WeChat, listing its ruling on a current economic two parties dispute that involved a business contract linking to transfer of cryptocurrency assets.
According to the court case analysis, the plaintiff, who was unnamed signed a contract agreement with the defendant that permitted the latter to trade and be able to a pool of cryptocurrency assets on the plaintiff’s behalf.
However, the plaintiff told that the defendant unsuccessful in returning the cryptocurrencies after scheduled deadline, that’s why they carried the case to the adjudicator, looking for the return of the assets with interest. The cryptocurrency balance at clash worth around $493,158 included around 20
bitcoins, 50 bitcoin cash, and 13 bitcoin diamond.
The official body said that one core dispute made by the defendant was that the prohibition from the People’s Bank of China (PBoC) on cryptocurrency offer means cryptocurrency transactions should be illegal in China.
The arbitrator said, “The Arbitration Court noticed that, after September 2017, major Bitcoin exchanges operating in China at the time suspended their businesses. But technically, that fact does not prevent the defendant from sending the bitcoin and bitcoin cash at dispute to the plaintiff upon
the agreed deadline.”
The court settled that, bitcoin should be protected as property according to China’s contract law, whether it is legal tender or not. The court case analysis added: “Bitcoin has the nature of a property, which can be owned and controlled by parties, and can provide economic values and benefits.”
The Shenzhen court is one of the Arbitration Committees recognized in China afterward the country acts out a law in 1995 enabling city governments to form such entities to rule on financial clashes
relating to contract issues in areas such as real estate, finance, and business.