Shanghai court says crypto ownership legal under China

[bbc.reporter]

@btcinfo891. Owning bitcoin and other cryptocoins was open to the interpretation of the government. It was not declared legal and it was also not declared illegal. However, how can they stop their citizens if they can go to the internet and buy a cryptocoin similar to monero or bitcoin if they know how to use mixers.

In any case, it was the Shanghai court's interpretation that owning cryptocoins is not illegal but another court under another jurisdiction can interpret it as illegal.

[zasad@]

https://www.scmp.com/tech/blockchain/article/3287415/shanghai-court-says-crypto-ownership-legal-under-china-law-amid-bitcoin-price-surge

Shanghai court says crypto ownership legal under China law amid bitcoin price surge
In an opinion on a recent lawsuit, a Shanghai judge wrote that cryptocurrencies have the attributes of property and thus holding it is legal

If I understand correctly, owning crypto has always been legal under Chinese law, so the Shanghai court has only confirmed the Chinese government's official stance. On the other hand using crypto to buy services and/or goods has been illegal in China for quite a few years and there are no prospects of that changing anytime soon.

Actually this is the direction in which laws in most countries are moving to, it is OK to own crypto provided that you go through full KYC when you buy/sell it. It is OK to trade with it on officially approved and licensed exchanges, too. However you are not allowed to buy/sell services and/or goods in the country for crypto. Or even if the country's laws formally allow to buy services/goods for crypto, the crypto transactions require so much safeguards, KYC and paperwork, that it is simply not feasible to make the transaction while doing everything in accordance with the law. It is much easier to use the fiat money to buy/sell the services/goods.

If you are interested in the practice of applying bans in China regarding cryptocurrencies, then I will tell you. China borders Russia, many entrepreneurs come to China from Russia, officially everything is sold for Chinese yuan, but if you really want, then Chinese intermediaries take both dollars and cryptocurrencies and no one asks you for declarations and KYC

[bbc.reporter]

@zasad@. Agreed. There is also a black market that occur near the Hong Kong-Chinese border for stablecoins, this is usually in USDT in Tron that are held in hardware wallets for quick exchang. The Chinamen pay Yuan with very high exchange rate heheheh.

However, what is being implied is that ordinary Chinamen can get stablecoins or cryptocoins illegally and over the limit of the amount they are allowed to send out of their country.

[zasad@]

@zasad@. Agreed. There is also a black market that occur near the Hong Kong-Chinese border for stablecoins, this is usually in USDT in Tron that are held in hardware wallets for quick exchang. The Chinamen pay Yuan with very high exchange rate heheheh.

However, what is being implied is that ordinary Chinamen can get stablecoins or cryptocoins illegally and over the limit of the amount they are allowed to send out of their country.

I am not familiar with China's policy on controlling the outflow of money from the country. China is very big and many places are closed to tourists. If businessmen pay for goods in China with cryptocurrencies, then the Chinese government does not try to fight it, because it is profitable for them. But if money leaves the country, then it is bad.

[bbc.reporter]

@zasad@. The Chinese government does not allow their citizens, companies and banks to send a certain amount of money outside of their jurisdiction without a type of permit or license. There are many articles about this on the internet.

In any case, this is certainly why the American dollar through stablecoins has a very strong usage in China because they can move their money without following the strict laws of the government of the Xi of the Jin and the Ping hehehhe.

[zasad@]

@zasad@. The Chinese government does not allow their citizens, companies and banks to send a certain amount of money outside of their jurisdiction without a type of permit or license. There are many articles about this on the internet.

In any case, this is certainly why the American dollar through stablecoins has a very strong usage in China because they can move their money without following the strict laws of the government of the Xi of the Jin and the Ping hehehhe.

But why would a Chinese merchant take money out of the country if his country has everything?
He doesn't need to buy goods in other countries, China sells more than it buys, and that's why over time there will be a lot of stablecoins in China.
And the laws in China are strict. I saw a case where 2 cleaners got a job in a Chinese company and worked there for a month. Then they spent several years in a pretrial detention center. Why? A criminal case was opened against the company and all the workers were detained, including these cleaners.