Merchants are Legally Allowed to Accept Bitcoin and Crypto In China

As reported by CnLedger, a trusted cryptocurrency news source in China, the country’s merchants will legally accept crypto as a payment methodology.

According to local reports, the Shenzhen Court of International Arbitration officially recognized Bitcoin as a property, allowing people and businesses to own and transfer Bitcoin without being in conflict with existing financial regulations.

“Chinese court confirms Bitcoin is protected by law. Shenzhen Court of International Arbitration ruled a case involving cryptos. Inside the verdict: CN law doesn't forbid owning & transferring bitcoin, that should be protected by law as a result of ofits property nature and economic value.”

Circulation and the Payment of Bitcoin in China isn't illegal

Katherine Wu, a cryptocurrency researcher at Messari, translated and analyzed court documents released by the Shenzhen Court of International Arbitration to delve into the reasoning behind the decision of the intermediator to consider Bitcoin as a property.

In essence, Wu explained that due to the decentralized nature of Bitcoin that gives financial freedom and economic value to the owner, the asset can be recognized as a property.

“The Party contends that Bitcoin has characteristics of a property (SOV), is controlled by the owner, and has economic value to the owner. It doesn't break any laws. This intermediary agrees,” Wu said.

As such, the court emphasized that irrespective of the legality of Bitcoin and other major cryptocurrencies, the circulation and payment of Bitcoin isn't illegal. That means, merchants will freely accept cryptocurrencies as a payment method without breaking the local law.

“In the arbitrator’s view, whether or not bitcoin is legal, the circulation and the payment of bitcoin isn't illegal. Bitcoin doesn't have the identical rights as fiat, but that doesn't mean that holding or paying with crypto is illegal.”

Earlier this month, China’s oldest technology publication Beijing Sci-Tech Report (BSTR), a respected media company within the country, released its plans to just accept Bitcoin for its yearly subscription to push the usage of the blockchain and sensible use cases of the dominant cryptocurrency.

BSTR disclosed that beginning 2019, the yearly subscription to its magazine will be sold at a worth of 0.01 BTC, value around $65. If the value of BTC rises substantially in the future, the publication stated that it'll compensate its customers.

Several hotels in major cities in China have also began to accept cryptocurrencies, one of which branded itself as Ethereum hotel, providing merits and discounts to those who pay for their services using Ethereum.

What does This Show about China?

In consideration of China’s optimistic stance towards blockchain technology and positive comments concerning the sector created by government agencies, it's become a lot of apparent that the govt. placed a blanket ban on cryptocurrency trading to prevent the devaluation of the Chinese yuan and to limit speculation in the market.

But, overall, the govt. remains open to crypto and also the usage of the blockchain to enhance existing infrastructures and problems regarding software and data settlement.

** Important : If any body likes my cryptocurrency news and wants to donate BTC then send me as little as you can to my Bitcoin wallet address for running my blog.

This is my Bitcoin wallet address : 3KZSXtJ8ZN6bBzLsyLHAxL5AcCpbdC3XcX