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China's Supreme Court Recognizes Bitcoin as Protected Property Amidst Longstanding Ban

On June 7, 2023, China's Supreme People's Procuratorate made headlines by ruling that Bitcoin is legally recognized as property under criminal law.

This landmark ruling involved a case where a defendant, referred to as Zhang, was sentenced to nearly 11 years in prison for stealing 107 Bitcoin.

The court emphasized that Bitcoin's economic value and exclusive ownership characteristics classify it as protectable property under Chinese law.

Despite China's stringent ban on cryptocurrency transactions initiated in September 2021, which declared all crypto-related trading illegal, courts have started acknowledging Bitcoin's status as property.

For instance, a Shanghai court ruled in 2024 that ownership of cryptocurrencies aligns with legal frameworks, reinforcing the perception of Bitcoin as a legitimate asset.

Through this recent case, the Supreme People's Procuratorate issued guidance for lower courts, suggesting that Bitcoin theft should be prosecuted and valued according to market rates.

This creates a paradox where Chinese law simultaneously forbids the buying or selling of Bitcoin while offering legal protections for its ownership.

The implications of this ruling are significant, as it establishes a rare legal environment where a country bans a currency yet recognizes it as property.

This development illustrates the evolving nature of cryptocurrency regulation in China and raises questions about the future of Bitcoin in such a complex legal landscape.

Ultimately, the case signifies that even the most restrictive environments cannot ignore the inherent value and recognition of cryptocurrency as property.