If you thought Bitcoin (BTC) was banned entirely in China, you are wrong according to a cryptocurrency news source in China. Merchants in China are legally allowed to accept BTC as payment.
Local reports indicate that the Shenzhen Court of International Arbitration recognizes Bitcoin as a property and so individuals and businesses are allowed to own and transfer BTC. There are no barriers to regulations.
The case was tried in Shenzhen which is one of China’s special economic ones and may have helped the situation of cryptocurrency given the Blockchain startups initiated in Shenzhen.
Bitcoin’s decentralized nature classifies it as a property as it provides financial freedom and economic value to the owner, according to a cryptocurrency researcher Katherine Wu.
China is more inclined towards supporting Bitcoin mining with companies such as Bitmain, Ebang, and Canaan Creative.
The sources, however, state Bitcoin, Bitcoin Cash (BCH), and Bitcoin Diamond (BCD) being classified as a property due to its decentralized characteristic however the state of other cryptocurrencies are not classified as yet.
It’s no wonder Chinese companies such as the oldest technology publication Beijing Sci-Tech Report (BSTR) has released plans to accept Bitcoin for its yearly subscription from 2019. Annual subscriptions will be sold at a price of 0.01 BTC and will change depending on Bitcoin’s value.
Overall it’s not just Blockchain technology that is widening in China but even cryptocurrency but only in the field of real world usage and not trading. The news shows positivity of China using Bitcoin for various payments as the world is shifting into digital payments. For example research lab by the People’s Bank of China submitted 41 cryptocurrency patents which are a positive sign of China’s vision for blockchain and cryptocurrency for their future.
China may run into a favorable widespread Bitcoin adoption given the latest news from Shenzhen Court of International Arbitration.
Image Source – Flickr
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