China: Bitcoin Not Banned Entirely
The latest on Bitcoin in China:
China Didn’t Ban Bitcoin Entirely, Says Beijing Arbitration Commission
According to a July 30 report published by the Beijing Arbitration Commission (BAC), China’s prohibition of Bitcoin is more nuanced than some have suggested.
“The “General Principles of Civil Law” do not make specific provisions on the extension and connotation of virtual property, but only stipulates that the protection of virtual property must be stipulated by law, and the specific protection measures of virtual property are entrusted to other laws. As the country currently has no laws on Bitcoin, it cannot be recognized as a virtual property.”
“In summary, the state does not prohibit Bitcoin’s activities as virtual commodities, except for the activities that Bitcoin is engaged in as legal tender,” the report adds.
Additionally, since Bitcoin does not constitute money in China — as the government has not approved Bitcoin as a legal tender — and since Bitcoin is not used as an alternative to the legal tender or fiat currency, it should not be associated with an illegal transaction, the BAC said:
“The prohibited transactions include those when Bitcoin is used as a currency. If Bitcoin does not engage in activities as a currency, it is not a transaction prohibited by the state. For example, in the equity transfer contract dispute decided by the Shenzhen International Arbitration Court, the two parties agreed on the return of Bitcoin. Bitcoin is only used as a general property. Therefore, the transaction does not violate relevant national regulations and should be valid.”