Bitcoin recognized as digital currency in Shanghai

[bbc.reporter]

@Husires. Where did you think the Shanghai People's court's recognition of bitcoin's legitimacy come from? The basis of courts and judges are always from the law. If you are implying that they are trying to rewrite the law, they are not. However, with the type power of the communist party of China has, this makes the party above the law.

[bbc.reporter]

News update.

This might begin a storyline of from Hong Kong to Shanghai, the acceptance of the cryptospace and the issuance of Chinese ETF for bitcoin in Shanghai. In China, if former ministers presently have the courage to tell the government what they should be doing, this implies that there are many politicians presently working in the government who are silently supporting on what is being suggested.



At a 2024 economic forum in Beijing, former Finance Minister Zhu Guangyao urged China to rethink its crypto approach amid accelerating US policies.

He acknowledged the risks but stressed the importance of staying updated on global shifts, stating, “We must fully recognise its risks and the harm it poses to capital markets, but we must study the latest international changes and policy adjustments because it is a crucial aspect of digital economy development.”

Zhu noted that the US has made significant policy changes this year, including the approval of 11 Bitcoin ETFs.

He even quoted former President Donald Trump, who has been advocating for embracing crypto to prevent China from taking the lead in the sector.

Trump’s opponent, Kamala Harris, has also recently adopted a stance on clear-cut and progressive crypto regulations.

While China maintains a cautious stance, it has taken small steps towards becoming more open to crypto.

Chinese investors can still purchase crypto through Hong Kong-based firms, and in April, three Bitcoin ETFs were launched in Hong Kong.

Read in full https://www.dlnews.com/articles/regulation/china-pressed-speed-up-crypto-policy-us-bitcoin-etf-lead/

[icalical]

While the Shanghai's Court recognized Bitcoin for its uniqueness and consequently qualified it as personal property, the ruling was not an official policy turnabout, let alone a return of crypto trading to China. The government was stiff on the ban against crypto, and institutional investors were further away from adopting it. The very strong stance taken on cryptocurrencies by the Chinese government is, in itself, a big obstacle. Even with such legal recognitions, one would expect that the Communist Party will keep such a tight grip on regulation, especially when it comes to finance. hence, the general diffusion of Bitcoin in China might still be far off for the foreseeable future. While the court ruling lends certain legal legitimacy to Bitcoin as property, it is far from opening the doors for full-scale trading or mining.

[Ziskinberg]

One step at a time; maybe next time they’ll allow trading.

This is what stands out...Bitcoin is seen as a "unique digital currency" because of its inherent value. It’s different from all other digital currencies due to its store of value, limited supply, and decentralized nature. Other digital currencies don’t share these features. Since it's a new law, people should be cautious in how they use it, as they might misinterpret its legality. They need to remember that trading Bitcoin is still not allowed, and it can’t be used as a payment method, it’s more like property, similar to how the USA views it. Lastly, they should avoid going back to mining, as it’s not covered by this law either.

[Sebas.tian]

I do not know how decisions are made and laws are formulated in China, but I think that the Communist Party rules the country and a court decision in a city cannot rewrite the law in China.
Bitcoin is considered banned, and if this changes, it is positive news. If it does not change, it will not affect the price, so there is no difference.
There is nothing at the moment that will change that Bitcoin is banned in China, so we may not hear an update about that in the near future.

Since the declaration is from china court, I think it will stand to allow Bitcoiners in China to mine Bitcoin and trade Bitcoin in the country, because the decision has been made by court which it will going to back up all the digital currency users in their country. I think that is what the judge of the Shanghai court discovered that it will not going to change the price of Bitcoin, if  it remain banned in the country, because China are not the one controlling the price of Bitcoin and they will never be, because Bitcoin is a decentralized currency that is be control by buyers and sellers. If this Shanghai court is the superior court in china, I think the decision will be final and it will make their government to lift the banned on Bitcoin trading and mining, and it will make Bitcoin users to start their daily trading, mining and long term trading again to continue making income from their trading.

[348Judah]

More countries will begin to wake up from their slumber regarding their take on bitcoin right from inception, to an extent that some will have to blame themselves that why haven't they adopted for bitcoin all this long, because more revelations are unveiling about the unique influence of bitcoin on individuals life and as a collective benefit, there is more we can see and earn from it adoption if we truly dive more deeper on its uniqueness.

[OcTradism]

News update.

While China maintains a cautious stance, it has taken small steps towards becoming more open to crypto.

Chinese investors can still purchase crypto through Hong Kong-based firms, and in April, three Bitcoin ETFs were launched in Hong Kong.[/i]

Read in full https://www.dlnews.com/articles/regulation/china-pressed-speed-up-crypto-policy-us-bitcoin-etf-lead/

China can not step outside a big technology trend on the globe and the regime of Xi Jin Ping will end, after that China will move to a new era with their new national leader.

The nation grows up in unsustainable ways and it will struggle to maintain its position against other big nations. If its economic size drops, there will be less investment in their Army forces and its power impacts on geopolitics will drop consequently. I believe that it will happen and Bitcoin, cryptocurrency market will be more stronger against strategic, policy and regulation news from China in future.

The world is big and it's more than China mainland, so cryptocurrency market will move on with less worry on what's happening in China mainland.

[Lucius]

~snip~
Chinese investors can still purchase crypto through Hong Kong-based firms, and in April, three Bitcoin ETFs were launched in Hong Kong.[/i]

When it comes to crypto ETFs, I'm sure (if something hasn't changed) that Chinese people outside HK cannot invest in such funds, and that's why these ETFs are real dwarfs compared to those in the US. In what way can people from China invest in cryptocurrencies, generally on CEX, which are located in HK, that's another question - it's no secret that the company of the recently convicted criminal CZ actively participated in supporting everyone (and I guess the Chinese as well) who wanted to circumvent such protection.

“A lot of people are banking on wealthy Chinese locals, but, officially, you cannot buy this ETF if you're a mainland Chinese investor,” said Eric Balchunas, a senior ETF analyst at Bloomberg. That’s because it must be listed on something called the Stock Connect, which allows Chinese citizens to invest in certain Hong Kong ETFs, and vice versa.
“This will never be available there,” says Balchunas.

[avikz]

As long as the communist party remains on power, China will never see bitcoin being legalized. The back bone of Communism is absolute control! Bitcoin takes away the control and Chinese government do not like it.

Doesn't matter what Chinese court thinks about anything. Unless their supreme leader approves, nothing happens in reality. China will force people to use CBDC so that they can come under the surveillance of the Chinese government. Crypto will not make its way into China, legally!

[dificanovi]

Maybe the government in China is tired of breaking the adoption of Bitcoin in their country. Now they are trying to open up little by little the opportunity for Bitcoin to develop in their country. This is positive news for all of us that Bitcoin is very strong and no one can stop it from developing throughout the country.

[Fiatless]

News update.

This might begin a storyline of from Hong Kong to Shanghai, the acceptance of the cryptospace and the issuance of Chinese ETF for bitcoin in Shanghai. In China, if former ministers presently have the courage to tell the government what they should be doing, this implies that there are many politicians presently working in the government who are silently supporting on what is being suggested.

Zhu Guangyao's suggestion was fueled by national interest. The former minister wants his country to compete with the US in the crypto industry. The government can decide to accept or reject his advice. Until the news of a policy change comes from Xi Jinping or a top Chinese government official, the country remains unfriendly.   

Since the declaration is from china court, I think it will stand to allow Bitcoiners in China to mine Bitcoin and trade Bitcoin in the country, because the decision has been made by court which it will going to back up all the digital currency users in their country. I think that is what the judge of the Shanghai court discovered that it will not going to change the price of Bitcoin, if  it remain banned in the country, because China are not the one controlling the price of Bitcoin and they will never be, because Bitcoin is a decentralized currency that is be control by buyers and sellers. If this Shanghai court is the superior court in china, I think the decision will be final and it will make their government to lift the banned on Bitcoin trading and mining, and it will make Bitcoin users to start their daily trading, mining and long term trading again to continue making income from their trading.

China is under the strong grip of the Communist Party. I don't think they will obey a court order that stands against their policies. The Chinese judiciary is not independent, they are under the control of the central government. Such court order or judgement will merely be for academics. China is the second-largest economy in the world, so Beijing's crypto policies can influence the market.

[livingfree]

That's really a tough situation for the people in there. And that's what communism is all about based on the leadership that they'd follow.

Sadly, even if there will be a lot of good proposals about it, the final say will still come from the president Xi and no one will be able to alter that but only him.

But who knows? their economy needs to uprise because of the loans that they've given to many countries, they need another source for more money to flow into their economy.

[Lucius]

Zhu Guangyao's suggestion was fueled by national interest. The former minister wants his country to compete with the US in the crypto industry. The government can decide to accept or reject his advice. Until the news of a policy change comes from Xi Jinping or a top Chinese government official, the country remains unfriendly.   
~snip~

What national interest are you talking about? Well, the average Chinese has only one thing in his interest, and that is to be obedient or to become an enemy of the CP - and in that case his life will turn into hell. That minister didn't do himself any favors by saying such things, who knows, maybe a very dark future awaits him.

China has literally 0% interest in competing with the US in terms of cryptocurrencies - because if they ever wanted to, they wouldn't ban everything related to them. We are talking about economies that have a GDP of tens of trillions of $ - does anyone think that China lost something because it banned mining and trading with cryptocurrencies?

[Fiatless]

Zhu Guangyao's suggestion was fueled by national interest. The former minister wants his country to compete with the US in the crypto industry. The government can decide to accept or reject his advice. Until the news of a policy change comes from Xi Jinping or a top Chinese government official, the country remains unfriendly.   
~snip~

What national interest are you talking about? Well, the average Chinese has only one thing in his interest, and that is to be obedient or to become an enemy of the CP - and in that case his life will turn into hell. That minister didn't do himself any favors by saying such things, who knows, maybe a very dark future awaits him.

I said national interest because the reason why he wants China to review its policy on cryptocurrency is to compete with the US. He doesn't want China to be an onlooker in the crypto market, that's love for his country.   

China has literally 0% interest in competing with the US in terms of cryptocurrencies - because if they ever wanted to, they wouldn't ban everything related to them. We are talking about economies that have a GDP of tens of trillions of $ - does anyone think that China lost something because it banned mining and trading with cryptocurrencies?

They lost money. Maybe they didn't know that the industry would grow this big. The US recently changed its rigid stance on Bitcoin by approving the Spot ETF after years of refusal.

China might be a rich country but it doesn't undermine the fact that they still need more money. The goal of any economy is to keep expanding, so every opportunity regardless of how small will be appreciated. The US economy is benefitting massively from the crypto market.
.
https://www.chainalysis.com/blog/cryptocurrency-gains-by-country-2023/#:~:text=2023%20estimated%20cryptocurrency%20gains%20by,%241.39%20billion%20in%20crypto%20gains.

There are also speculations that Hong Kong's decision to make the country a global crypto hub has the approval and backing of Mainland China. Maybe Hong Kong is China's crypto laboratory, who knows?

[bbc.reporter]

News update.

While China maintains a cautious stance, it has taken small steps towards becoming more open to crypto.

Chinese investors can still purchase crypto through Hong Kong-based firms, and in April, three Bitcoin ETFs were launched in Hong Kong.[/i]

Read in full https://www.dlnews.com/articles/regulation/china-pressed-speed-up-crypto-policy-us-bitcoin-etf-lead/

China can not step outside a big technology trend on the globe and the regime of Xi Jin Ping will end, after that China will move to a new era with their new national leader.

The nation grows up in unsustainable ways and it will struggle to maintain its position against other big nations. If its economic size drops, there will be less investment in their Army forces and its power impacts on geopolitics will drop consequently. I believe that it will happen and Bitcoin, cryptocurrency market will be more stronger against strategic, policy and regulation news from China in future.

The world is big and it's more than China mainland, so cryptocurrency market will move on with less worry on what's happening in China mainland.

However let me tell you, and I have repeated this many times in the forum already, the Xi of the Jin and the Ping has already declared in a speech that he wants China to be a leader in technology including blockchain. This was a speech during 2019, I reckon. If I remember correctly also mentioned that blockchain will be a part of China's big companies by 2030. But this might be a difficult mission if they do not open their jurisdiction for all blockchain technologies today, however. But this might occur on 2025 which will certainly be very bullish for the cryptospace.

Another bullish occurrence on this is it might create a precedent that America and Europe might also increase their efforts to be the leader in blockchain technology hehehe.

[Reatim]

The very strong stance taken on cryptocurrencies by the Chinese government is, in itself, a big obstacle. Even with such legal recognitions, one would expect that the Communist Party will keep such a tight grip on regulation, especially when it comes to finance. hence, the general diffusion of Bitcoin in China might still be far off for the foreseeable future. While the court ruling lends certain legal legitimacy to Bitcoin as property, it is far from opening the doors for full-scale trading or mining.

You are right though I can see why people feel a bit excited about this recognition. It is better than China not acknowledging crypto anymore and holding on to their stance regarding crypto. At least this is progress that they are making. Despite the recognition, I am sure there will still be many strict policies about holding and trading. The government would want to have control over this as much as they can. I still think that it can be good for investors or traders to at least be able to do it in the country, but it will not be as free as it is in other countries. Many could even be a bit hesitant to actually use crypto due to regulatory policies that are not yet very clear. One step forward but still quite a long way to go.

[yhiaali3]

It is indeed surprising that the Shanghai People's Court suddenly recognized Bitcoin after all the bans and penalties they previously imposed on Bitcoin and mining, causing miners to emigrate abroad or sell their equipment.

Although the Shanghai People's Court's declaration that Bitcoin is a digital currency means that Chinese Bitcoin holders will be taxed, this is much better than the current situation. We hope that the Chinese government has begun to understand the importance of Bitcoin, similar to the United States, and that it cannot be ignored or stopped.

[fruktik]

I am viewing this news from two perspectives.  One,  it is possible that the Chinese government is gradually changing the unfriendly perception about bitcoin so they are using court judgments to prepare the path for the policy change. Secondly, these judgments are merely for academic exercise, nothing will come out of them. The Chinese judiciary are not independent,  in fact they are just rubber stamp to the communist party.

Do you know when Bitcoin will be accepted in China? Only when the political regime changes to one that is more loyal to the population. That is, it should be a democratic country, not a totalitarian regime. At the moment, this is just a futile effort and nothing more. Those who closely follow the news in the crypto world understand perfectly well that China is not a state that is predisposed to such fundamental changes. The current leadership is afraid to let go of the levers of pressure on citizens, as this threatens that the chairs of the ruling elite may shake.

[Russlenat]

Although the Shanghai People's Court's declaration that Bitcoin is a digital currency means that Chinese Bitcoin holders will be taxed, this is much better than the current situation.

It’s not taxable yet since Bitcoin isn’t considered legal tender and isn’t widely accepted as a payment method. It’s currently viewed as a unique digital currency, and there's no specific mention of taxation in the guidelines. You can own Bitcoin secretly and keep it in your wallet without breaking any laws. However, the moment you declare that you're accepting Bitcoin in exchange for goods or buying it, you could be charged for violating the law. It’s still early days, but this is actually good news for Bitcoin enthusiasts in the country. Hopefully, more positive developments will come, and Bitcoin will be openly accepted like in other major countries.

[shield132]

Now they recognized Bitcoin as an unique cryptocurrency, LMAO. Bitcoin is Bitcoin and it has been recognized by Bitcoin community who use it and understand its value. Shanghai or Chinese government won't be able to stop or break the Bitcoin adoption growth.

The population of China is 1.412 billion people. If you know how strict China is and how big of an impact they have on world trade and the economy, then you'll know that the Chinese government is able to ruin the growth of Bitcoin adoption.

Neither do I, but the ann does not come from him, but from Shanghai People’s Court, although I think it is better to assume that if they announce this, it is because they somehow have the approval of the President or high authorities of the state. With the policy they followed after being one of the first countries to adopt Bitcoin and its mining, I don't trust a simple statement.

China is a direct competitor of the USA. Since the USA approved Bitcoin ETFs, China now has to do something. They decided to say no to Bitcoin but in a centralized world where the US has all the powers, it's not a good idea to say no to the decentralized currency, especially when the USA is gaining much power on it. I think it was very stupid of them to ban Bitcoin mining because many Chinese fled to other countries and put billions of dollars into investments. It's logical if they decided to recognize Bitcoin now.