Judge: Bitcoin should be protected by law, but these virtual currencies cannot be used as currency in the market

According to a report by the People ’s Court newspaper, in response to the “Yesterday ’s Shanghai First Intermediate People ’s Court determined that Bitcoin is a virtual property of the network and should be legally protected”, the trial judge Liu Jiang pointed out that the People ’s Bank of China and other ministries and commissions have issued Documents such as “Notice of Bitcoin Risk” (2013) and “Announcement on Preventing the Risk of Token Issuance and Financing” (2017) did not deny the property attributes of Bitcoin as a commodity, nor did China ’s laws and administrative regulations Prohibit the holding of Bitcoin. The “Notice on Preventing Bitcoin Risk” further mentions that, from the nature, Bitcoin should be a specific virtual commodity. Therefore, Bitcoin possesses the attributes of virtual property and virtual goods and should be protected by law. However, documents such as the “Notice” negate the legal status of including such virtual currencies as currency, and virtual currencies such as Bitcoin cannot and should not be used as currency in the market. Liu Jiang reminded that investors should invest rationally, control risks reasonably, and maintain the safety of their own property. Lianwen Note: On May 6, the Shanghai No. 1 Intermediate People’s Court publicly pronounced an appeal for a bitcoin foreign-related property damage compensation dispute. The second instance determined that bitcoin belongs to network virtual property and should be legally protected. Bitcoin should be fully refunded or compensated at a discount.