Possession of Bitcoin still legal in China despite ban, lawyer says

Crypto holders in China are protected by law against theft, embezzlement or breach of loan agreement despite ban cryptos. New

Despite enforcing a major cryptocurrency ban a year ago, the Chinese government still protects local crypto investors, as crypto is recognized as virtual property protected by law.

One of the most hostile countries in the world towards Bitcoin (BTC), China has not yet banned the possession of cryptocurrencies, according to David Lesperance, founder of the law firm Lesperance & Associates.< /p>

Crypto holders in China are protected by law in the event of theft, misappropriation or breach of a loan agreement, Lesperance told Cointelegraph. He pointed out that crypto exchanges are still banned in China.

The attorney referenced a recent Chinese court case involving a breach of a loan in the Litecoin (LTC) cryptocurrency. Defendant Ding Hao failed to fully repay the 50,000 LTC he borrowed from Zhai Wenjie in 2015, which has become a major legal precedent involving cryptocurrency in China.

Since 2015, the price of Litecoin has jumped around 1,800%, while the cryptocurrency was trading at around $3 7 years ago, according to data from CoinGecko.

On August 31, Beijing Intermediate Court No. 1 ruled that the defendant owed Zhai the remaining amount of Litecoin, rejecting Ding's argument that the People's Bank of China (PBoC) had officially banned crypto transactions last year.

"The court confirmed that cryptocurrencies like Litecoin are 'property' even though they are created in the virtual realm," Lesperance said. He pointed out that the crypto community “should not draw any particular positive conclusions” from the case as it was a “very ordinary” commercial lending dispute that was settled under the normal rules of property law. , stating:

"To date, owning crypto in China has not been banned. [...] It doesn't make the trade...