Bitcoin recognized as digital currency in Shanghai

[Lucius]

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.

This only made me laugh, because you are talking about some kind of political love of current and former members of the Communist Party of China towards the Chinese people? Does China have "political love" for the millions who are in labor camps just because they did some trivial thing against the regime?

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.

Do you know the difference between a billion and a trillion? China's GDP in 2023 was about $18 trillion, and according to the graph you show, gains in the US from cryptocurrencies amount to $9.36 billion for that same year - 1 trillion equals 1000 billion. Now tell me what kind of massive benefits you are talking about when it comes to the US, which had a GDP of $27 trillion in 2023 - what does $9 billion mean in that amount?

[Fiatless]

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.

This only made me laugh, because you are talking about some kind of political love of current and former members of the Communist Party of China towards the Chinese people? Does China have "political love" for the millions who are in labor camps just because they did some trivial thing against the regime?

It is on record that the Chinese government has little or no respect for citizen's fundamental rights. But my point is that a former government official wants China to be a key player in the crypto space just like the US and I see it as nationalism.  

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.

Do you know the difference between a billion and a trillion? China's GDP in 2023 was about $18 trillion, and according to the graph you show, gains in the US from cryptocurrencies amount to $9.36 billion for that same year - 1 trillion equals 1000 billion. Now tell me what kind of massive benefits you are talking about when it comes to the US, which had a GDP of $27 trillion in 2023 - what does $9 billion mean in that amount?

The graph I showed contains the crypto revenue of some countries and not their entire GDP. China's total revenue in 2023 was slightly above $3 Trillion. Indeed, $9.36 Billion is still insignificant, but at least it was an addition to the total government revenue. The benefit might not be massive (like I earlier said) but it could help build some infrastructure.   

[Lucius]

It is on record that the Chinese government has little or no respect for citizen's fundamental rights. But my point is that a former government official wants China to be a key player in the crypto space just like the US and I see it as nationalism.

The key thing is that it is a former minister who now says one thing, but when he was a minister he said something completely different. Unfortunately, you have one way of thinking that doesn't make much sense - because after all, you think that China should compete with the US (or anyone else) when it comes to cryptocurrencies.

The graph I showed contains the crypto revenue of some countries and not their entire GDP. China's total revenue in 2023 was slightly above $3 Trillion. Indeed, $9.36 Billion is still insignificant, but at least it was an addition to the total government revenue. The benefit might not be massive (like I earlier said) but it could help build some infrastructure.   

If you think that one bag of sand on one huge beach makes a difference, then your logic makes sense - but even if all CEXs and all BTC mining farms were located in China, it would not represent even 0.1% of what China earns in one year. Besides, China is a huge country and the impact of $10 billion on infrastructure is practically invisible.

[AmoreJaz]

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.

They should take advantage of this situation while their government has no strict regulations when it comes to crypto taxations. The declaration may entice their citizens to explore the benefits of crypto transactions, and thus, may contribute in the increase of the demand.
It also shows that the government can really change their perspectives over bitcoin or crypto market. Remember, the news few years ago about China banning crypto, and here we are now, Shanghai is recognizing again this digital currency.
Shanghai is China's financial hub, so such move is actually another good boost for btc. This news however, started in 2022. So I am assuming that this year, they have better treatment to the crypto market.

"In 2022, the Shanghai High People’s Court declared Bitcoin a virtual asset with economic value, protected by Chinese law. This ruling acknowledged Bitcoin’s unique characteristics, distinguishing it from traditional currencies."

[bbc.reporter]

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.

Agreed that it might be taxed, however, this is only a necessity for the Chinese government under the rule of the Xi of the Jin and the Ping to accept bitcoin and certainly after this, the cryptospace. This will imply that much inflows from Chinese seed investors, venture capitalists, traders, market makers and other types of whales will begin arriving when Shanghai has opened their jurisdiction for cryptocoin exchanges, DeFi exchanges, lenders, borrowers, liquidity providers and all types of other participants.

[mateofurtado]

What many governments don't understand, especially regarding how Bitcoin works, is that it is impossible to ban or eliminate it, since banning Bitcoin is like banning the internet. Politicians who want to control the banking system and force everything to go through it don't realize that individuals can trade Bitcoin with just a device that has internet access and do so anonymously. Not only that, but they can also send funds outside the country to anywhere in the world. Bitcoin has no entry or exit barriers, and governments will have to learn to live with that, and for those who don't like it, too bad.

[bbc.reporter]

Has this Chinese judge begun something which might cause the Chinamen and women to become more brave and they also might be encouraged to buy and own bitcoin because of the opinion expressed by this judge? The article also mentioned that institutional investors under the jurisdiction of China are not allowed to invest in the cryptospace, however, I speculate that this might change. We cannot for certain know when this change might occur, however. This might be longer than 5 years.



The South China Morning Post cited an article written by judge Sun Jie of the Shanghai Songjiang People’s Court, published this week on the official WeChat account of the Shanghai High People’s Court.

Read in full https://en.cryptonomist.ch/2024/11/21/official-in-china-it-is-legal-to-own-bitcoin/

[$weetne$$]

Has this Chinese judge begun something which might cause the Chinamen and women to become more brave and they also might be encouraged to buy and own bitcoin because of the opinion expressed by this judge? The article also mentioned that institutional investors under the jurisdiction of China are not allowed to invest in the cryptospace, however, I speculate that this might change. We cannot for certain know when this change might occur, however. This might be longer than 5 years.

I think he has because already the Chinese are big lovers of Bitcoin and we have alot of people from that region involved in investing in Bitcoin and with the legalization of Bitcoin in china, it will encourage more people to buy and with their population, we can have a large amount of people joining the industry. Since it is now legal to own Bitcoin as a personal property, I do not think there is any more laws stopping the wide range of adoption that will be coming form China. First it was the US being very friendly to Bitcoin with the incoming president and then it's China, this are all signs of what the bull market holds and shows the potential of the kind of bull market run that we are about to have, with more positives news the price will keep increasing.

[kotajikikox]

I think he has because already the Chinese are big lovers of Bitcoin and we have alot of people from that region involved in investing in Bitcoin and with the legalization of Bitcoin in china, it will encourage more people to buy and with their population, we can have a large amount of people joining the industry.

To be fair, before bitcoin was banned in China, they were one of the biggest population to buy and hold bitcoin so needless to say that there definitely is demand in the region for bitcoin. Who could say what or how could bitcoin have progressed in China if there were no laws that banned it in the first place. Maybe it would have been the innovators and pioneer of web3 and crypto related projects but well these are all what ifs and now they are going to need to catch up again.

Since it is now legal to own Bitcoin as a personal property, I do not think there is any more laws stopping the wide range of adoption that will be coming form China. First it was the US being very friendly to Bitcoin with the incoming president and then it's China, this are all signs of what the bull market holds and shows the potential of the kind of bull market run that we are about to have, with more positives news the price will keep increasing.

I do wonder if this would trigger China. We know that China and US do not get along well together. Could China see US being friendly with Crypto as a threat that they would want to start being friendlier to crypto than US or will they completely go towards the opposite direction? It is crazy to think how crypto is so wrapped and involved in politics as well.

[tread93]

I didn't consider Hong Kong that big of a deal because it's a very peculiar part of China where things are done differently and which even has a different legal status from most of China. But Shanghai's a very different story, as it's one of the biggest Chinese cities. The court suggest viewing Bitcoin as personal property, not a currency, but it's still significant. Is this decision likely to be overruled? Or is it likely that this court's actually expressing the view of the government, considering how centralized power is in that country?

China has banned bitcoin and unbanned bitcoin so many times I think I lost count. I love referencing that south park clip about the chinese banning bitcoin lmfao, now that junk is some funny stuff man lolol. Its only declared property in China until its not anymore which could happen as soon as next week with their track record ha. But I don't think that will be the case here, I think everyone is taking bitcoin much more seriously and now it is looked at in a much different light then before...

[Oluwa-btc]

I didn't consider Hong Kong that big of a deal because it's a very peculiar part of China where things are done differently and which even has a different legal status from most of China. But Shanghai's a very different story, as it's one of the biggest Chinese cities. The court suggest viewing Bitcoin as personal property, not a currency, but it's still significant. Is this decision likely to be overruled? Or is it likely that this court's actually expressing the view of the government, considering how centralized power is in that country?

Even if it is rejected, I still see it as a positive thing from the country of billion people because as we know, they are one of the countries with the harshest ban on bitcoin and cryptocurrency. So even if this recognition is rejected, it is certain that there will be other proposals in the future.

Bitcoin has been growing without China for years, this news is not big news for bitcoin. But it is also interesting to know that the demand for bitcoin has become so great that there is no way to stop it anymore. Like it or not, I believe the Chinese government must accept the fact that it cannot stop bitcoin.

I see the point entirely;,I like the fact that even as the needs of the China government needs Bitcoin's attention,the need for Bitcoin's attention and usage should be put into consideration and be placed up on a scale of 1 to 10.China or no china, Bitcoin is relatively associated with an intense growth and approach to finances.

[bbc.reporter]

News update from China.

If 2024 witnessed the Trump pump, I predict that 2025 will witness the pump of the Xi of the Jin and the Ping! The chinamen are beginning talks to create a regulatory framework and if this has been created, there will be an announcement that the cryptospace will become legal in Shanghai.

I am not certain on what month, however, it might be this year.



China's judiciary authorities accelerate research on legal treatment of crypto amid ban

A Beijing court disclosed on Tuesday that representatives from the Supreme People's Court and several other top judiciary authorities and universities held a seminar on Sunday to discuss research studies and the legal treatment of cryptocurrency.

The seminar also urged further study on strengthening cooperation between judicial and regulatory agencies and proposed practical solutions for handling cases involving cryptocurrencies.

In December, the People's Bank of China, the central bank, highlighted crypto regulation in its latest annual financial stability report, noting that it is working to improve an international regulatory framework for crypto assets.

Read in full https://www.theblock.co/post/343438/chinas-judiciary-authorities-accelerate-research-on-legal-treatment-of-crypto-amid-ban

[UNTO Chain]

The Shanghai court's recognition of Bitcoin as a distinct digital currency is significant because it acknowledges its value and potential impact on society. By distinguishing Bitcoin from other virtual currencies, the court recognizes its unique characteristics such as rarity, global acceptance, and inherent monetary qualities. This distinction sets the stage for future discussions about how to regulate and integrate cryptocurrencies into mainstream financial systems. Additionally, recognizing Bitcoin as personal property provides clarity for individuals involved in transactions involving cryptocurrency ownership or theft cases. While China has banned cryptocurrency trading and mining, this ruling demonstrates that there may still be ways to legally protect those who engage with these assets within certain parameters set by local regulations.

[JiiBs]

News update from China.

If 2024 witnessed the Trump pump, I predict that 2025 will witness the pump of the Xi of the Jin and the Ping! The chinamen are beginning talks to create a regulatory framework and if this has been created, there will be an announcement that the cryptospace will become legal in Shanghai.

I am not certain on what month, however, it might be this year.

What a time to bring this back up and rightly so.

It’s nothing new that the Chinese unlike the Russians are always after being ahead in the series of innovations happening in our world today such as; robotics, AI and weaponry and more. Even more so, it gives an idea as to why digital currencies like Bitcoin would always continue to number amongst such. With Trump haven’t made headlines globally due to his support for Bitcoin and cryptocurrencies to the point of creating an alt, it’s only normal to expect some sort of speedy response from the Chinese in that regard to get ahead of cryptocurrency regulations.

Even then still, it’s important we don’t let politics be mixed in a cryptocurrency business. It would mean a different ball game as these guys don’t really value it for what it is.