Litecoin Approved By Chinese Court For Not Being Treated As A Currency

Despite the country’s ban on digital asset services, a Chinese court has determined that residents can still trade cryptocurrencies. Notably, China already prohibits cryptocurrency trading, claiming a risk to financial sector stability.

According to the Beijing Number One Intermediate People’s Court, interested investors can only trade cryptocurrencies, which should be recognized as virtual assets rather than cash.

The decision was decided in a case involving a Litecoin (LTC) loan with the promise of paying interest in digital currency. According to the facts of the case, Zhai Wenjie lent his buddy Ding Hao 50,000 Litecoins in 2015. Ding Hao, according to Zhai Wenjie, offered to pay 1,000 Litecoins in interest each month, which the defendant disputed.

Despite acknowledging the current Chinese restriction on cryptocurrency trade, the sitting judge stated that Litecoin could not be considered money. According to the court, cryptocurrency is not issued by a monetary institution and lacks legal and financial support.

“According to real administrative regulations and cases, our country only denies the monetary attributes of virtual currency and prohibits its circulation as currency, but the virtual currency itself is a virtual property protected by the law.”

Interestingly, despite the country’s current restriction on Bitcoin (BTC), the court evaluated Litecoin, adding that such assets are governed by legislation in the country.

The judge emphasized a lack of legislation forbidding the view of Litecoin as an illicit asset in the case. As a result, the judge found in favor of the plaintiff, finding that the defendant had borrowed a cryptocurrency and ordering him to refund Litecoin.

It can be said that the issuance of uniform regulation of cryptocurrencies in China is still unclear, different Chinese regional courts have issued differing judgments on the trading and handling of digital assets. In May, the Shanghai High People’s Court ruled that Bitcoin has economic value and is protected under Chinese law.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News