Despite China’s hostile stance on cryptocurrencies and Bitcoin in particular, things have changed in recent times. The bank on cryptocurrencies has been lifted in Hong Kong. That’s not the case in China, but compared to a few years ago, several Chinese courts have officially recognized Bitcoin as an asset of value.
Things like this could potentially play a major part in the next Bitcoin bull run. When the last one happened a couple of years ago, it results in China banning crypto trading and mining. But now, China’s stance on Bitcoin has been softened mostly because of court reports such as the one from Shanghai No. 2 Intermediate People’s Court which has recognized BTC as a non-replicable digital asset.
Hong Kong Playing the Main Role
Although it operates under its laws and regulations, Hong Kong is still China. It’s the most important financial center in the country. It’s also an international finance center, and the fact that the crypto ban has been lifted in Hong Kong means a lot. The experiment with legal crypto trading in Hong Kong hasn’t had the impact everyone was hoping for. But, it is a massive shift compared to the crypto trading ban from a few years ago.
Mainland China’s stance has changed too. A report from the Shanghai court mentioned above on September 25 saw one judge—Ren Suxian—stating that Chinese law recognizes Bitcoin as an asset of value. The report doesn’t talk about cryptocurrencies in general – it specifically mentions Bitcoin. The court further talks about how different bailiffs handle these cases differently depending on the price calculation. Since there are no legal exchanges in China, it’s a bit difficult to determine the price of Bitcoin. However, what’s important is that Chinese law recognizes the value of these digital assets.
The latest judicial report that acknowledges Bitcoin as an asset of value in China gives cryptocurrencies legitimacy in one of the world’s top financial markets. A previous court report from September 1 assessed the legality of virtual assets and analyzed the criminal aspects of these assets. It determined that they are protected by the law, effectively rendering the 2021 blanked ban on crypto obsolete.
Overcoming Communist Laws
For the past 30 years, China has been open to the free market. It has overcome the communist laws a long time ago no matter how it looks from the outside. If you check how it determines the prices for its exports, you’ll see that it’s no different to how the West does it. It means that the once-communist system is all but perished from China. Of course, what’s happening in China now means that it’s trying to defend its communist propaganda. But, the power of the free market is too big of a draw for the country’s corporations, and that mask will fall sooner or later.
Just as the communist approach has been abandoned in everything else, it will be abandoned in the financial sphere for sure. The latest crypto court reports are proof of it, and we’re lucky that one of the world’s top financial markets is open to the idea of Bitcoin and crypto.