A court in Shanghai recognized bitcoin as property under the protection of the law

The Shanghai High Court has classified bitcoin as a virtual asset with legally protected economic value.

“Based on established practice, the People’s Court found that bitcoin meets the attributes of ownership and has a certain economic value. Legal rules must be applied to protect it, ”the document says.

The statement relates to a case involving Cheng Mou, who on October 10, 2020 filed a lawsuit with the Shanghai Baoshan District People's Court demanding the return of 1 BTC from the defendant, Shi Moumou.

Following a hearing on February 23, 2021, the court ordered the defendant to return the coin within ten days of the ruling. However, she refused to make the payment, prompting the plaintiff to seek legal redress. Subsequently, the Baoshan court arranged for mediation between the two parties.

Liu Yang, an expert from the Deheng Law Office in Beijing, told Bitcoin.com that the High Court statement will be used as a precedent for civil disputes related to Bitcoin.

Recall that in September 2021, the People's Bank of China, together with nine state institutions, published a statement in which they classified operations with cryptocurrencies as illegal financial activities.

Earlier in 2019, a similar status of virtual property to bitcoin was assigned by the court of the city of Hangzhou.