China provides official clarity on holding Bitcoins and p2p OTC trading


  • The country still prohibits Initial Coin Offerings (ICOs).
  • There are altogether 461 pending court cases regarding Bitcoin.

Xiao Wei, a Council Member at the Law Research Association of the Bank of China, has recently announced that Chinese citizens can safely hold Bitcoins (BTC) despite its ban in the country. The Chinese legal system strictly prohibited ICOs, but has a different perspective about the possession of cryptocurrencies and the rights associated with them:

“In 2013, China gave a clear definition of the legal nature of Bitcoin itself: a specific virtual commodity, that is, its status as a “property.” The General Principles of Civil Law, implemented on October 1, 2017, reconfirmed that virtual property is protected by Chinese Law. Xiao Wei analyzed that based on this, owning Bitcoin is legal in China.”

Likewise, OTC trading will also not be considered as a crime. According to the laws, this would be an act of “disposition of power” in which one person transfers to another an asset along with the rights associated with it. “How to dispose of it is the private right of the owner, and others have no right to interfere,” Wei explained.
 
Wei’s statement tells us that the Chinese government has a restrictive policy that seeks to reduce the activities associated with cryptocurrencies.  BJNews reported that there are altogether 461 pending court cases regarding Bitcoin.
 
However, the Chinese government has maintained its ban. Xiao Wei is in contact with other lawyers and there is a general agreement that according to the Country’s Criminal Law, non-p2p trading may fall under the Article 225, numeral 3 of the Criminal Law, “Other illegal business operations that seriously disrupt market order.” So far, almost all trials associated with cryptocurrencies in China have been the result of fraud against third parties.
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Forecast: BTC/USD has one strong resistance level at $11,500

BTC/USD bears have remained in control for the second straight day. BTC/USD is currently trading for $11,324.24. The daily confluence detector shows a lack of healthy support levels on the downside.

More Bitcoin News

XRP/USD keeps trending in downward channel formation as price drops below $0.27

XRP/USD bears stayed in control of the market for the second straight day as the price continued trending in a downward channel formation. So far this Wednesday, the price has dropped from $0.2828 $0.2788.

More Ripple News

Ethereum Price Forecast: ETH/USD downtrend holds as $350 calls profusely

Ethereum has continued to explore the downside since the rejection from the new yearly high at $415 on August 2. The immediate reversal tested support at $325. However, Ether recovered in a reflex motion settling shortly ...

More Ethereum Classic News

BCH/USD consistent lower high pattern could refresh $260 support

Bitcoin Cash has continued to record lower highs following the rejection the bulls suffered at the beginning of August, close to $340. A descending trendline has remained intact for the second week in a row as well. 

More Bitcoin Cash News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC hit the pause button before a decisive breakthrough

Bitcoin lived through a wild roller-coaster move during the previous weekend. The coin hit the new 2020 high above $12,000 and crashed to $10,500 in a matter of hours. 

Read the weekly forecast

BTC

ETH

XRP