Bitcoin Forum

[News article]
"Shanghai Court Recognizes BTC as Digital Currency"
Shanghai court recognizes Bitcoin as digital currency, citing its uniqueness and potential for ownership disputes.

[Open question]
China is a socialist country. I don't quite understand the recognition of Bitcoin.
Indeed, we should engage in an extended thought process to understand why China has chosen to recognize it.

If I were to guess — since it doesn't make sense for such a 'controlling' country to be interested in a currency they can control; (this is a sort of tinfoil-hat theory so bear with me) I think it's because they might think that bitcoin is(or can be) some sort of competitor to the USD.

That, or the fact that they don't care and that Bitcoin can be a surveillance thing for them (because transparent blockchain).

Chinese government is actually a crypto whale. This article (https://medium.com/@CryptoSavingExpert/china-may-hold-194k-bitcoin-more-than-any-public-company-aee4d15f83fe) is pretty old but it claims that chinese government owns 194k of BTC and 833k of ETH.

As I understood, most of these coins are the funds seized from from PlusToken ponzi scam but for some reason they are not rushing to sell the coins. My guess is that china is preparing a regulatory base for the cryptocurrencies and they might need a lot of liquidity in crypto in order to launch their own exchanges.

it should be, there is no reason to reject bitcoin. Not only China, but the whole world should accept Bitcoin as legal payment.

Thats 1% of supply. Its nowhere close to be a "crypto whale". MicroStrategy - a single company with average recognition (before investing in BTC) and average financial situation - owns 150k.
The US has more bitcoins - "As of August 25, 2023, the US government owns 205,515 bitcoins" (https://ambcrypto.com/blog/how-much-bitcoin-does-the-us-government-own/).

definitely the amount of bitcoins they officially have is not a justification for why they started supporting crypto.

China do not have international dealings with other countries with bitcoin or any other cryptocurrencies and they have not shown that they have it in mind. It only recognize bitcoin as a digital property that Chinese can hold legally. The country prefer the BRICS way to compete with United States dollar, but those BRICS nation are still not able to do something that will significantly affect United States dollar.

But China did not accept bitcoin as a currency, but as something that you can hold. As China is not accepting gambling but it is one of the countries that are mostly gambling. Also in crypto, it is the second country with bitcoin mining hashrates. There are a lot that is not accepted in that country, but there citizens are doing it.

China court declares virtual assets legal properties protected by law: (https://cointelegraph.com/news/china-court-declares-virtual-assets-as-legal-properties-protected-by-law-report)

They are recognizing BTC, they are going to embrace it. AFAIK China still has miners and the Chinese have a big chunk of volume contribution in Binance market. I have read articles about Hong Kong going to become the biggest crypto hub in Asia. They may not control BTC but they control the people and their data, I think they will not find it problematic.

They don't actually need to own the entire supply. But if they launch their own crypto exchange or any other crypto service which will be used across the china then they gonna need to keep lots of money in crypto in order to provide the liquidity for the freshly created market.

I'm not saying this is exactly how it gonna work, but this is just an option that gives a reasonable explanation of how China is going to use its stash.

This actually proves as China is a crypto whale.
MicroStrategy 158k vs Chinese 194k

Microstrategy is a company that employs 2,000 people and built its recognition on investing in bitcoin, but before that it generated practically no profits. China is a country with 1.4 billion citizens and a GDP of $17T


All they need is a good arbitrage trader.

Microstrategy is one of the world's largest BTC whales.
But anyway, I see not much reasons to compare the company with the government. Both own the large amount of BTC and this is all I need to know in regards to the crypto market.


With no funds? Or you want them to buy shit tons of BTC on spot once they going to launch an exchange?

Sometimes it's hard to understand this country, China. To be honest, before, they were very negative about bitcoin or cryptocurrency, but they have a Bitcoin mining farm. There was a time when they banned crypto, but now they recognize it. Why?

Because they know something good will happen to Bitcoin in the upcoming halving? So they sense that when the bull run comes, Bitcoin's price value will plummet in the market, so they don't want to lag behind when it comes to Bitcoin holding countries? So sometimes I think that what they give negative to Bitcoin is just a strategy of China to dump the price of BTC, and then they will suddenly buy a lot of it.

No it didn't!

It has just ruled that:
Virtual assets represent property and are thus protected by law!

What this means is that if you have 200 BTC and they got stolen that's a criminal act and the victim should seek compensation, if I lend you 1 BTC and you don't pay back it's like I lend you a car and you run with it or you take $20 000 and again don't pay back!
The court decided that virtual currencies have value, that's it, and they can't be treated like Candy Crush saga diamonds or saved games!

It's not about BTC it's about all virtual currencies and they recognized them as property, not as a currency!

Let me use this opportunity to correct a small impression concerning the precised board that this post or thread have to allocate to, from my observation concerning this, I think that the main place whereby this thread suppose to have more traffic for discussion is bitcoin discussion, because trading is basically meant for buying and trading of cryptocurrencies and also learning of the strategies to implies so that investor especially the new ones won't be able to be victims of losing all of what they invested in trading. The aspect of China accepting bitcoin or recognised bitcoin through court order, I think it's a welcomed development in cryptocurrency market because if the information is real I think bitcoin will be positive in the market, only if the companies in China embrace bitcoin for monetary transactions and also invest in bitcoin and as well choose an option of payment with bitcoin their participates or employee.

What a roller coaster ride of Bitcoin on that country. They've announced a lot of bans from Bitcoin to ICO, mining, etc. Last time, there was a news that they're pilot testing CBDC. This time, they're recognizing and its court declared that it's a digital currency.

Don't get confused by them. Anything that there's gonna be money on it, they're going to recognize it. Just like the other known economists telling that they dislike Bitcoin or it's a shit, they're the same as theirs. As long as there's a cash cow on this space, they'll not tell things that they're planning to do.

Regardless of their views about Bitcoin, I am still having doubts on their initiatives, intentions, etc., because they still want to control the people’s lives there.

I do not know if banks and financial institutions there are still prohibited from accepting Bitcoin and other cryptocurrencies as of this time as BTC being categorized as properties and not legalized as mode of payment like in Russia.

As long they are not being recognized as currency, I would remain having doubts on China in terms of adoption. But still there are people there doing BTC transactions underground via P2P trading.

There's a huge reason why China had come up to that certain decisions to choose bitcoin in the first place, but I see it has a lot of advantages in the near future of making our mode payment become digitalize.
The convenience and value of money became more important compared with traditional way of payment which is existing in different parts of the world.
Unfortunately, it's hard to adopt on some countries that's poor in education towards cryptocurrency.

In fact, when there was a ban on all crypto activities in China several years ago, crypto activities there also did not stop, in fact they continue and develop to this day. And what's more, if now their activities are protected by law, this will make things easier for them. However, we will see later whether this will change again or not as time goes by. Because we know how this country plays against Bitcoin and Crypto as a whole. Let's just follow them. This might be a good trigger for positive trends, at least it would be good to pick up the bullish era. But once again, however, we shouldn't just be careless when it comes to dealing with things like this. Remain as usual and continue to be wise in all decision making for the crypto activities that we personally undertake.

The reasons why China keep banning and accepting Bitcoin is what I don't really know. They once ban Bitcoin and after a while it was recognized and a currency and later Bitcoin was also ban and now it is acceptable in the country. I think there is a reason to this which we might not know yet unless we live in China or understand the reasons behind the decisions. Although it is quite interesting for China to bring back all the lost Bitcoin investors which might have decided to give cryptocurrency a halt for a while since there country do not recognize Bitcoin then.

There are millions of people in China who hold Bitcoin from before it was banned. If if trading and other activity is illegal people are still entitled to protection from theft. It is their property and it may hold substantial value so criminals shouldn't just be allowed to take it. The courts are doing the bare minimum to acknowledge Bitcoin holders' rights but I don't think it means that they will fully reverse their ban anytime soon.

that's a lot of BTC for one little-known company. This is an average of a lot of BTC for the BTC network (1% is not much), and negligible compared to the capital flowing through China. Therefore, in my opinion, they will not change the law that affects 1.3 billion people just for pennies.


You can arbitrage BTC without BTC via margin trading or futures trading. And the arbitrage trading itself is usually decentralized to many smaller entities - the Chinese government does not have to have anything to do with providing liquidity. All it takes is for the price of BTC to drop by 1% compared to other exchanges and people will start making money, earning $10,000 for every $1 million they arbitrage.

I am against this recommendation because Margin or Futures trading is very risky. It can give people hope that they can get rich quickly after some successful trades with Margin or Futures trading but fast comes, fast goes. They can quickly lose their money with Margin or Futures trading.

Rather than taking risk with those trading types, I would like to use Spot trading and patiently wait for good entries with different chart candles like 15-min, 30-min, 1-hr and slowly increase my capital with disciplined trades.

Trading with x1 leverage looks similar to Spot trading but when a trader already touches Margin, likely he will lose control soon.

It's hard to tell when China does, they sometimes recognize Bitcoin and then ban it, which is really weird. Also, there is a Bitcoin mining farm in China, maybe they have re-accredited Bitcoin for that. Many times it has been seen that after banning Bitcoin, the price of Bitcoin has dropped completely and China has bought Bitcoin, and then they do such strange things in hopes of profit. Moreover, it is difficult to say why they accepted it at present, but many have predicted the bright future of Bitcoin, so they may have done so. Bitcoin will halve in front and then the price of Bitcoin will increase rapidly China may have this in mind and once again recognized Bitcoin in their country.

First maybe the article is just a shill type but not confirmed? We knew that China hates bitcoin and even Ban them few many times now. If somehow they did recognize it then there must be something useful for them or maybe a manipulative act to gain from it. China is a smart country and will do everything to gain much power and this could be another scheme. Who knows why such a situation occured and if its involved Chun then there is definitely something here.

As far as I know it is because of the Shanghai government court that they recognize Bitcoin as a distinctive currency. and because of this, this move by shanghai shows that the country of China is once again ready to recognize Bitcoin as a major good investment asset for the future.

This also increases adoption in their community recognizing Bitcoin as an asset and also used in various fields of payment. This is a good step by Shanghai to further boost Bitcoin's dominance.

hmm, there are continuous fictional stories about China, I cant get what Op is trying to say, China is the one country that continuously imposes the Ban on the crypto market, especially Bitcoin and now hearing this from OP, I really cant digest it.

While going through the thread Stompix, said it did not indicate any legal recognition for the crypto or Bitcoin, China did open some policies for the crypto space but that really didn't put forward any narrative to support the market rally. If in the future China is going to recognize Bitcoin somehow, its investors need to be careful a China can really change its policies again after using the market for their own gains. I think China will support the CBDC's rather than the Bitcoin.

Who in their right mind would miss an opportunity to make money? As we all know, China is a controlling country, my understanding is that they want to use the existing technology to make a profit. China has gone back and forth between banning and unbanning Bitcoin many times and mining Bitcoin too. But now as they see that they can make profits out of it, they want to use it. Don't be shocked if you hear that China has banned Bitcoin again and seized every Bitcoin from every miner and user. This won't make me surprised tho.

Or there is some other shit that's been going on inside but we don't know about it. Only time will tell.

As far as I know and what I have read, there are several things about China's recognition of Bitcoin.

The first:

And the second:

Here I come to the conclusion, China just doesn't really recognize Bitcoin as a legal country, that's all, admiration for Bitcoin, maybe they are desperate to ban Bitcoin in various ways.

The reason why China is not serious about recognizing Bitcoin can be strengthened by other evidence.
Example:

China is cunning and does everything it can to gain benefits for them.

WHAT?! I'm talking about arbitrage strategy for professional arbitrage traders that wants to avoid currency risk (risk of holding a volatile asset). I'm not talking about retail investors gambling their savings on 100x leverage. Explain to me where is your risk when an arbitrage trader go with 100k spot buy on exchange X and 100k futures short on exchange Y to earn on spread, having 1 mln $ as collateral?

Yes true, but sometimes when you are faced with "more control over your citizens vs making more money" some nations prefer more control, and China is a dictatorship, no matter how strong or financially great or whatever they claim to be, there is no elections that you can pick the president as citizens, which means that it's a dictatorship, and that is why I think they are going to prefer blocking bitcoin as much as they can.

So, a news about them letting it be, no matter if it's true or not, makes people a little shocked. We need to realize that it's not going to be that easy and we are going to end up with some bad results if we are not careful and this was exactly that, reaching to a point where you are shocked they would consider it.