By Hassan Mehmood (Saudi Arabia)
A recent ruling by People’s Court of China has granted virtual currencies a status as legal property. On this account, the Federal Court has published an article signed by the judicial body of the country. The legislative article has issued provisions to assign cryptocurrencies as legal property.
As per the new regulations, the country has also ordained legal protection to the crypto coins in accordance with the law. The article has become a point of debate and discussion in the crypto community.
Chinese courts have issued the paper during a time when there is a federal ban imposed on any type of crypto activities in the region. In addition, the nation has also imposed a ban on foreign crypto exchanges to offer their services in the region as clients.
This article is posted as public notification under the title of Determination of Ownership Qualifications of Virtual Currency. The subject matter of the document shared findings regarding criminal activities surrounding virtual currencies and concluded by not qualifying them as illegal goods.
Accredited Entities Can Hold Cryptocurrencies as Legal Property
In accordance with the legal guidelines as per the new article issued by the Federal court, accredited entities in the country can hold cryptocurrencies as legal property. At the same time, the article has also decreed that any type of virtual money or property linked with criminal activities will not be confiscated or reimbursed.
Also read:Instead, the law enforcement agencies will need to process them in a separate lawsuit as per criminal and civil code of conduct.
At the same time, the article also added provisions for detecting and intercepting any criminal activities in regards to virtual assets. All such cases will follow a balanced approach in dealing with the case under personal property rights.
The authorities dealing with these cases must standby social and public interests as per the recommendations added by the document. Chinese courts have granted virtual currencies a legal status and protection under property rights on various occasions.
The government of China is implementing some new economic policies keeping in view the COVID aftermath. As per of its plans to bolster economic growth, the nation has implemented measures such as special refinancing plans and cheaper mortgages for regional banks as a way to aid the real estate sector.
At the same time, policies such as fee cuts have encouraged commercial entities to buy back shares and boost stock market.
In addition, lending firms in China are opting to lower margin for leveraged traders that allow them to borrow more funds. Additionally, new stock listings are subjected to additional regulatory scrutiny allowing existing companies to combat competition.
A data chart provided by analysts at Bloomberg has indicated the correlation between Bitcoin/USD pair and Chinese CSI 300 index with a 30-day correlation.
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