With China’s view that cryptocurrencies undermine national interests and enacting a series of bans against initial coin offerings (ICOs) and advertising digital assets, recent news indicates that the country may be shifting its stance on the industry. While some countries, such as India, declared that cryptos are not legal tender, it seems that a Chinese local court has recognized digital assets to be equivalent to property. This move has given merchants the ability to accept bitcoins for payment. Shenzhen Court of International Arbitration citing that Chinese law does not forbid owning and transferring bitcoin.
As the doors for cryptocurrency slowly open to the Asian economic giant, may inspire further growth for the country. As the country already host, though some in secret, many crypto exchanges, and produces the most crypto mining hub, the recent ruling may see even more business being brought to the country.
The case has set a precedent for the legalization of the use and transference of bitcoins by private citizens. This does not however indicate that digital assets are equivalent in scope to fiat money.
As a consequence of this decision, circulation and ownership of Bitcoin are now legal and merchants can accept cryptocurrencies as payment without being in violation of the local law. While the law falls short of giving the same rights to Bitcoin as fiat currency, it is a step in the right direction.
The blanket ban on cryptos has been a complete detriment to the industy within the country’s borders, as it has already had multiple hotels listing bitcoin as a form of payment, albeit, only from foreign nationals.