According to the Minhang District Court of Shanghai, Bitcoin should be considered a virtual property protected by Chinese law, making it exchangeable and exclusive.
The court described a case in which a purchase contract between a plaintiff and a defendant was reviewed in the article published on the official Wechain account. The plaintiff purchased mining rigs from the defendant online, but after the People’s Bank of China cracked down on Bitcoin and cryptocurrency mining in general, the plaintiff sought a refund.
The claim was rejected by the court, which stated that because Bitcoin is a virtual commodity, the purchase contract was valid.
The court also described various cases in the article that confirmed the nature of digital currencies as virtual properties. Bitcoin is regarded as a “special virtual currency,” the acquisition of which necessitates a certain amount of resources such as electricity or real estate.
Cryptocurrency is valued as an exchangeable item as well as a virtual property. Along with currencies, photos and letterheads are considered properties that can be stored on the network and belong to citizens.
Despite the fact that the Shanghai court considers Bitcoin and other currencies to be property, Jinah, a judge from another region of China, stated that agreements related to the purchase or any operation involving virtual currencies are not protected by law.