Back in 2017, someone had brought a case in the court which involved the loss of 70,000 yuan (around $10,750) by investing in unnamed crypto tokens.
And with the People’s Bank of China’s critical stance on cryptocurrencies, the accounts that were involved in the case were closed, which resulted in the permanent loss of tokens.
Now, the citizens’ hope that they can be protected by the government with their crypto ventures has waned. Shandong’s high court has sent a straightforward message to everyone in China that the government cannot (and will not) protect its citizens from the risks of cryptocurrencies.
Can’t expect legal protection
Shandong high court’s recent ruling is in line with other provincial court’s stance on cryptocurrency. The Fujian court, for example, has dismissed a Bitcoin-related case last year, highlighting the government’s hands-off approach when it comes to cases involving crypto risks and consequences.
But it seems that the courts and the government are giving mixed messages to its citizens. In the Shanghai No. 1 Intermediate People’s Court’s case, it ordered compensation for a couple whose Bitcoin assets were stolen. In 2019, the Hangzhou Internet Court recognized Bitcoin as virtual property.
China’s crackdown efforts
Last June, Qinghai province became the third province in China to crack down on mining operations because of its “environmental impacts”.
Baidu, China’s most popular search engine, and Weibo, the country’s most popular social media site, have both blocked searches for cryptocurrency exchanges such as OKEx, Huobi, and Binance.
China, even with its already intensified crackdown efforts, is expected to increase pressure on the country’s crypto industry.
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