China clarifies crypto rules as a Shanghai court allows personal ownership but keeps strict bans on trading, mining, and crypto businesses.
In a recent legal development, China has reinforced its control over cryptocurrencies. The Shanghai Songjiang People’s Court has clarified its stance on personal crypto ownership.
This move adds further complexity to China’s ongoing efforts to regulate digital currencies.
Court’s Ruling on Crypto Ownership
The Shanghai Songjiang People’s Court has stated that individuals can legally own cryptocurrencies like Bitcoin.
This ruling allows personal ownership but highlights the need for caution. The court clarified that, while owning cryptocurrencies is allowed, engaging in certain business activities remains illegal.
According to Judge Sun Jie, cryptocurrencies are considered virtual commodities with property rights.
Therefore, individuals can possess digital assets, but business use is still prohibited without proper government authorization.
The court’s statement reinforces China’s tight grip on crypto-related business ventures.
Even though personal ownership is legal, authorities have expressed concern over speculative trading.
Business entities are still prohibited from issuing tokens or making crypto investments. The government’s priority remains controlling the financial risks associated with cryptocurrency.
China’s Long History of Strict Crypto Regulations
China has always been cautious about the role of cryptocurrencies in its economy. In 2017, the government banned initial coin offerings (ICOs) and shut down crypto exchanges.
This was a clear signal of China’s restrictive stance on digital assets.
The crackdown intensified in 2021, when authorities banned Bitcoin mining and declared crypto-related business activities illegal.
These actions were based on concerns over financial stability and illegal activities such as money laundering.
China’s strict policies aim to curb speculative trading and protect its financial system.
Despite these regulations, individual investors have continued to engage with cryptocurrencies.
The government’s strict approach to businesses involved in crypto remains unchanged, however.
It is clear that China still wants to ensure digital currencies do not undermine its economic order.
Related Reading: China’s Digital Yuan Architect Convicted in $37M Crypto Bribery Scandal
The Impact of Crypto Guru’s Update
Recently, crypto analyst Crypto Guru tweeted: “JUST IN: CHINA BANS OWNERSHIP OF #BITCOIN & CRYPTO AGAIN.”
This tweet created some confusion about the legal status of personal crypto ownership.
However, it appears that this claim is not fully accurate, as the court’s ruling allows individuals to hold digital assets.
While Crypto Guru’s update may have raised concerns, the situation is more nuanced.
The Shanghai court has specifically allowed personal ownership of cryptocurrencies, provided no illegal activity is involved.
The government’s stance remains focused on preventing crypto-related business operations without proper authorization.
As the regulatory landscape continues to evolve, individuals and businesses must stay informed.
China’s strict measures are unlikely to change soon, and cryptocurrency users should be prepared for further restrictions.
In any case, personal crypto ownership is still legally allowed under the current framework.
Source: https://www.livebitcoinnews.com/china-expands-crypto-crackdown-with-new-ban-on-personal-holdings/
