Bitcoin, Crypto currency, Blockchain

Chinese arbitration classifies Bitcoin as property

The Chinese court of arbitration has recently delivered a judgment in which it means that it is not illegal Bitcoins in China is have to. You write that you can acquire the ownership of Bitcoin. The Shenzhen Court of International Arbitration announced a decision confirming that Bitcoin is protected by law.

Bitcoin as a property

The court announced the verdict in a matter, which was adopted against the Background of a dispute about a business, including the transfer of digital currencies. According to the Bitcoinis an unnamed plaintiff and the defendant joined together to form a business, where the defendant is a crypto-currency portfolio in the name of the Former operation.

The Chinese arbitration court ordered the defendant to pay the plaintiff the sum of 401.780 dollars due to a breach of an agreement between them. However, since no official body in the country is spending crypto-currencies, has not accepted the court the request for the payment of interest on the part of the defendant.

CnLedger, a leading crypto and Blockchain-a news source in China, has said that members of the Shenzhen Court of International Arbitration apply an existing scheme to this new technology.

At the Moment, China has the constitutional characteristics and the distribution of Bitcoin on the basis of the Blockchain technology on judicial and legislative level is not yet explicitly described. According to current case law, the arbitral Tribunal has declared the properties of Bitcoin in Accordance with the General principles of the civil law, the “contract law” and the contractual agreement.

Decision of the Chinese court of arbitration

The Chinese court of arbitration stated that Bitcoin is not widespread in accordance with the applicable provisions of the “notice to avoid financial risks at the time of issue of Token” of the tax courts. There is no provision for a commercial property, whether at law or mandatory. Bitcoin has no legal status, the equivalent of a currency. It should not be used as a currency in the market. However, there is no rule or law that prevents people from explicitly, Bitcoin or private transactions in Bitcoin, or to hodlen.

The defendant delivered the Bitcoins, which were agreed to by both parties and in accordance with the contractual agreement. The court sees this as a clear violation of the Treaty. The court came to the conclusion that Bitcoin should be legally protected by the Chinese law of contract, even if it is in China, a law is contrary to the offer:

Bitcoin has the character of a property, which may be in the possession and under the control of the parties, and is able to deliver economic values and Benefits.

Crypto-traders and VPNs

Despite various Attempts by the Chinese government to stop all local Exchanges, trade, traders and avoid the ban by presenting themselves, under different domain names. Crypto-traders in China have found ways to circumvent the ban on the crypto-currency trading and Initial Coin Offerings (ICOs) through the use of Tether (USDT), and Virtual Private Networks (VPNs).

Traders move their servers outside of China and register their legal organizations abroad. Chinese traders also use “client to client” Trades. This is exactly like a normal E-Commerce site. Here, merchants sell Online your Goods on an E-Commerce Website is a direct transaction between two persons is closed. The business is mostly Fiat against crypto (USDT). After receiving the Tether, the Trader can start trading from crypto to crypto on any stock exchange, over Virtual Private Networks (VPNs).

Currently in China, there are no restrictions on the use of VPNs, what is for a trader to be a potential gap for access to Exchanges. Nevertheless, the regulatory authorities work with third parties, the processing of transactions, which are suspected of using crypto-currencies to be brought into connection. Crypto-currencies such as Bitcoin, Tether to provide data protection to the trade and Online payments and VPN offers security for your Online presence. With a combination of Tether and VPN-crypto-traders hide their digital footprints.

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This article was from English into German:

Christian Rehm

Senior IT Consultant and Crypto Enthusiast always in search of interesting news.

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