August 24, 2021

Apparently China Has No Law On Crypto

 Jinan court yesterday revealed cryptocurrency investment and trading in the country is actually not protected by law.

The issue became contagious following a case study involving Bitcoin (BTC) in 2017. At the time, a Chinese resident had bought BTC worth 70,000 yuan ($ 10,794) after being pushed by three of his friends.

However, the situation became confidential when in 2018 China’s central bank, the People’s Bank of China (PBOC) warned financial institutions to stop services to cryptocurrency -linked accounts.

The accounts were immediately closed, causing investors to file lawsuits with allegations of fraud. However, the Jinan court clarified there is no law protecting bitcoin and other cryptocurrencies, making the investor’s allegations untenable.

In the latest development proves the situation of Chinese crypto investors still will not get support from the courts if faced with such problems with their investments.

China over the past few years has already shown firmness towards the crypto industry. Starting with restrictions on cryptocurrency services among financial institutions to restrictions on cryptocurrency mining.

China’s actions caused the majority of local crypto miners to move abroad such as the United States and Kazakhstan.