Hope on the HorizonThere is hope on the horizon for miners, investors, and exchanges both in and outside China. As I said, just because the government banned crypto (even if it is the government of the most populous country in the world) doesn’t mean development stopped. Because of this fact, a few new developments have surfaced.
Bitcoin as Actual PropertyA business conflict arose over the holding and transferring of crypto assets in China. An unnamed plaintiff signed a contract that allowed the defendant to manage, trade, and invest in a pool of cryptocurrencies on behalf of the plaintiff. As things sometimes go in business, the deal went belly up, and the defendant refused to return the plaintiff’s cryptocurrencies. A local news outlet reported on a ruling by the Shenzhen Court of International Arbitration, which decided that cryptocurrencies must be legally protected “by law due to its property nature and economic value.” >> IBM Shipping Blockchain Grows with Two More Carriers on Board The Shenzhen Court decided that Bitcoin and other crypto assets should be legally protected by China’s Contract Law, even if crypto is considered illegal tender in the country: “Bitcoin has the nature of a property, which can be owned and controlled by parties, and is able to provide economic values and benefits.” This is solid news. I dare say it is something like a repressed minority gaining rights. Perhaps that is a bit much as a comparison, but there is some truth to it. Cryptocurrencies are a minority of financial assets. They’re growing. And even though they are illegal tender in China, they are still being given rights.
Cryptocurrencies as CurrencyDespite China’s crackdown, cryptocurrencies are being given more than rights in the country—they’re being given use cases. For example:
- September 2018 saw the start of the Ethereum Hotel. This opened in the National Scenic Area of Four Girls Mountain, and it accepts Ether as payment.
- On October 1, Beijing Sci-Tech Report (BSTR)—an established technology news source—announced it would accept Bitcoin as a payment method. Starting in February 2019, its subscriptions may be paid for with BTC. This was done “to encourage the utilization of crypto in a real-world setting for practical actions.”
Being CautiousICOs are strictly forbidden in China—no exceptions. But what about STOs (Security Token Offerings), the upcoming darling of the cryptosphere? These are also being watched with apprehension by China. Pan Gongsheng, acting deputy governor of the People’s Bank of China, spoke at a financial forum in Beijing:
“The STO business that has surfaced recently is still essentially an illegal financial activity in China. Virtual money has become an accomplice to all kinds of illegal and criminal activities.”Alas, we won’t be seeing STOs in China anytime soon—but they may be coming out of China. Why? Because, despite the caution, people and businesses in China are pressing for the legalization of cryptocurrencies. They understand cryptocurrencies are the future, and if China keeps strangling them, then they risk being left behind. This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission! Featured image: DepositPhotos © Alexis84