According to one arbitration body in China, all Bitcoin owners should have their investments registered as property – and the most dominant cryptocurrency should be protected with economic values.
In today’s crypto news, the Shenzhen Court of International Arbitration is making headlines for publishing a case analysis that details new (potential) rules – triggered by a recent economic dispute that involved a business contract relating to possession and transfer of crypto assets.
According to the analysis, the plaintiff signed a contract agreement with the defendant which allowed the latter to trade and manage a variety of crypto tokens on the plaintiff’s behalf. From that point, the plaintiff said that the defendant failed and refused to return the cryptocurrencies to him after an agreed deadline – which is why and how they brought the case to the arbitrator.
The case included more than 20 Bitcoin, 50 Bitcoin Cash and 13 Bitcoin diamond assets, with a combined worth of $493,158.
This is what made the court responsible to rule out a potential set of guidelines. Even though there is no specific law in China about the regulation of cryptocurrencies, the arbitrator’s analysis can lead to one in the future.
As the court noted:
“The Arbitration Court noticed that, after September 2017, major bitcoin exchanges operating in China at the time suspended their businesses. But technically, that fact does not prevent the defendant from sending the bitcoin and bitcoin cash at dispute to the plaintiff upon the agreed deadline.”
The arbitration body also concluded that whether Bitcoin is a legal tender or not, it should be protected and legally based on China’s contract law.
“Bitcoin has the nature of a property, which can be owned and controlled by parties, and is able to provide economic values and benefits,” the court concluded.
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