In a recent announcement, the founder of the Tron network, Justin Sun, shared a significant development in the legal recognition of Bitcoin (BTC) in China. According to the information provided, the Shanghai No. 2 Intermediate People’s Court has officially acknowledged Bitcoin as a unique digital currency, which is distinct from other virtual currencies. This recognition, despite China’s cryptocurrency ban, marks a notable shift in the country’s legal perspective on digital assets.
The Uniqueness of Bitcoin Recognized
The Shanghai No. 2 Intermediate People’s Court’s acknowledgment of Bitcoin as a unique digital currency comes as a surprise given China’s strict stance against cryptocurrencies. According to Coinpedia, this recognition stems from the court’s observation of BTC’s scarcity and inherent value.
The court’s stance is further supported by the fact that Bitcoin is not replicable and possesses distinct attributes that differentiate it from other virtual currencies.
Legal Protection for Crypto Holders
Previously, in September 2022, a lawyer argued that Chinese law could offer protection to crypto holders, even in cases involving theft or breaches, despite the national crypto ban. This legal perspective was supported by a Shanghai court ruling in May 2022 that recognized Bitcoin as virtual property, strengthening the legal rights of cryptocurrency holders in China.
The court’s recognition of BTC as virtual property was a significant development, as it implied that courts might be more inclined to consider arguments classifying cryptocurrencies as personal properties in legal disputes.
Understanding the Property Attributes of Bitcoin
A deeper analysis of the Shanghai Second Intermediate People’s Court into Bitcoin’s property attributes highlights the digital asset’s relative scarcity and widespread recognition, even in the face of regulatory ambiguity. Despite being decentralized and lacking central authority management, the cryptocurrency exhibits key functions of traditional currency, including scale, circulation means, storage means, payment means, and global usage.
This emphasizes that individuals can obtain Bitcoin through various means, including labor production (mining), inheritance, or buying and selling. This recognition further legitimizes BTC as a valuable digital asset in China.
Justin Sun’s Crypto Holdings Surge
Shifting focus to Justin Sun, the founder of the Tron network, a related report from MSN indicates a significant increase in the value of his known cryptocurrency wallets. Data from Arkham Intelligence reveals that between August 19 and September 19, the total value of cryptocurrencies in Sun’s wallets surged from approximately $733 million to over $1.1 billion.
Sun’s largest cryptocurrency holding is Wrapped Staked Ethereum (WSTETH), valued at about $315 million and comprising nearly 169,000 tokens. This substantial increase in Sun’s crypto holdings within just one month underscores the volatile nature of the cryptocurrency market.
The Shanghai No. 2 Intermediate People’s Court’s recognition of Bitcoin as a unique digital currency, along with the legal protection provided to crypto holders in China, indicates a notable shift in the country’s perspective on cryptocurrencies. Despite the national ban on cryptocurrency activities, the legal recognition of Bitcoin’s property attributes and the increased value of cryptocurrency holdings, as demonstrated by Justin Sun, highlight the evolving nature of the crypto landscape in China.
Giancarlo is an economist by profession with a career spanning nearly two decades. His professional journey has seen him assume vital roles in various government and private organizations such as the Department of the Interior and Local Government (DILG), the National Economic and Development Authority (NEDA), Megaworld Corporation, and the China Banking Corporation in the Republic of the Philippines.
In addition to his civic and corporate pursuits, his forward-thinking approach has led him to manage several prominent websites in the banking and finance sector, notably the Australia-based RateChoice, where he immersed himself in the world of emerging financial technologies and where he found particular interest in Bitcoin all the way back to 2013.
Prior to his addition to Blockzeit’s dynamic team, he held an essential role as Project Manager for initiatives encompassing blockchain, stablecoin, mining, special economic zone development, and iGaming. This noteworthy chapter in his career unfolded under the auspices of InPlan Consultancy Services, Inc., the think-tank of IMPERO Consortium Management Corporation headquartered in Manila, Philippines, and Tokyo, Japan. InPlan, led by a distinguished retired Cabinet member of the Philippines, collaborates directly with IMPERO’s core management team, contributing to strategic planning and business development endeavors.