China Court: Cryptocurrency Can Be Classified As Legal Property And Protected By Law

Key Points:

• Cryptocurrency is considered legal property in China.
• Its exchange value exists objectively due to legal recognition and circulation.

Cryptocurrency is property with an objective exchange value and legal recognition, protected by law in China. Opinion in China Court Daily.

An opinion article in China Court Daily pointed out that “cryptocurrency has economic attributes and can be classified as property”. Its exchange value exists objectively due to legal recognition and legal circulation in the global market. It is legal property in China and should be protected by law.

According to the article, crypto itself has use value, which is manifested in acting as a settlement medium and virtual certificate or property. The exchange value of crypto exists objectively, and it has become a means of payment for purchasing goods and services in real life.

Obtaining other people’s crypto by illegal means shall be dealt with as a property crime. Cryptocurrency objectively has a positive use value and exchange value, which is different from drugs and other contraband that do not have any positive value.

In judicial interpretations, for the purpose of protecting possession, it is stipulated that theft, robbery, drug fraud, and other contraband constitute related property crimes, and cryptocurrency should be the object of property crimes.

Based on the physical characteristics of the computer data of crypto, there has been a practice and view in judicial practice and academic theory that crimes involving crypto are convicted and punished as computer information system crimes.

However, an evaluation of the use value and exchange value of cryptocurrency to better understand its role in the financial system and to avoid violating the “statutory crime and punishment” is necessary.

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