The high court of China’s southeastern Guangdong province has ruled cryptocurrency investment activities are not protected by law, further clarifying that crypto is not a legitimate currency in the mainland.
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- The Guangdong high court on Tuesday listed a crypto-related virtual asset dispute as one of the 10 key internet cases for 2021.
- In this case, a group was accused of deleting the private keys for cryptocurrency XIN, leading to an 11.9 million yuan (US$1.9 million) loss for the plaintiff.
- An internet court in Guangzhou, which handled the case, ruled that XIN did not carry the legitimacy of a fiat currency and related investment activities were not protected by law, leaving investors to cop the losses.
- In September last year, China outlawed all crypto transactions and crypto mining.
- The high court of the eastern province of Shandong also said in August that “the behavior of investing or trading cryptocurrency is not protected by law.”
- However, a Shanghai court in August ruled Bitcoin a virtual property.
See related article: Crypto-related crimes in China still high despite ban on transactions