Against the run of play on cryptocurrency in China, cryptocurrency holding is set to receive a massive boost in the country as a local news outlet confirmed that crypto holding is now legal in the country. The recent development is after the ruling of a local arbitration court on crypto holdings.
Crypto Holding and Trading To Become Legal in China
Based on the ruling of The Shenzhen Court of International Arbitration that ruled in favor of crypto holding as an asset that is tradable in the country, the door is now opened for crypto holdings and trading in the country.
The new development is noted by a local news outlet, cnledger as a boost to consumers and other businesses to purchase in BTC without worrying about the financial regulators or authorities.
The arbitration court in its ruling noted that the Chinese law does not prohibit the exchange of bitcoin and that because of the nature and economic value of its holding, it should be protected by the law.
Katherine Wu, a Cryptocurrency researcher, noted that virtual currencies such as bitcoin is now a property in the country and is protected under the law. Wu further stated that based on different legal definitions for digital assets and uncertain regulations the arbitration court judge that ruled relied on the old law and the general provision of the law to determine the contract is still a debate.
Clamp down on Cryptocurrency In China
Before the ruling of the arbitration court this past week, the crypto space in China has received less attention and recognition as the country has made efforts to clamp down association with cryptocurrency.
The ban on cryptocurrency has made many crypto startups to desert the country to where regulations are more conducive for their operations.
The ban has been recently topped with a ban on ICOs related activities from holding in the country, and bank accounts associated with cryptocurrency have been shut down. Also, payment platforms that offer crypto payment options have had to cease operations to comply with the government regulations; this includes Tencent, Alibaba among others.
Meanwhile, efforts of clampdown have seen more increase of adoption and used in the country. Recently, the oldest tech publication in China rolled out its subscription with cryptocurrency. Also, hotels in the country have also started offering hospitality service in exchange for cryptocurrencies.
The ruling of the arbitration court and its impact on the crypto space in China will be made explicit in the coming days.