China Can Now Accept Bitcoin Payments Legally, Decrees Court
While the Chinese government was on full throttle with their crypto-crackdown, their efforts to curb the growth of cryptocurrency in the country has been halted by the Shenzhen Court of International Arbitration as the authority decided to overturn the ban.
According to the local media reports, the court’s decision has brought in much relief to the crypto enthusiasts across the country. Along with the ruling, the court has laid out some basic guidelines.
Bitcoin is an asset or a property
The court has decreed that bitcoin is not a digital currency, it shall be treated as an asset or a property. This implies that individuals and organizations can own, trade and transfer Bitcoin in a similar manner of any property. Notably, with this decree, the new regulation does not directly conflict with the financial laws and regulations employed for money.
The declaration however devoid bitcoin of the currency status, it still gave some rights and protection that are applied to the property. As property trade is legal, crypto payments can be now accepted in the country.
Katherine Wu, a crypto researcher studied the documents released by the court and explains the integrities of the ruling. Bitcoin is now characterized as a property, the owner can control it, it has economic value and does not break any law. She stated:
In China, many merchants have already gone cashless. Even small kiosks in China accept payments using popular payment applications, such as Tancent’s WePay. With the court declaring that holding and transferring Bitcoin legal, merchants in China now can utilize the cheap and fast payment offer of crypto transactions without fear of breaking the law.
Even during the crackdown, there were leaks observed. For instance, a few weeks ago, one of the oldest technology published a magazine in the country, Beijing Sci-Tech Report announced to accept payments in bitcoin for their annual subscription. The action was to help promote blockchain technology and show off the practicality of cryptocurrencies, as mentioned by the publishers.
Another example was the opening of Ethereum Hotel, one of many major hotels in several large Chinese cities that readily accept cryptocurrencies. Upon payment through Ether, the patrons are offered special discounts.
The recent reversal of the ban and the acceptance of bitcoin and other altcoins that the Chinese government is opening up not just for blockchain but the cryptocurrencies as well. Though the ban was intended to save Yuan from devaluation and to control the subsequent risk of fraud and scams that might lead to economic destabilization.
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