The governments of the world have started gearing up towards regulating taxation on cryptocurrencies as Bitcoin rides to almost 100,000 dollars. It reflects well on the importance of the cryptocurrencies in world markets and portrays the concern of the governments to ensure that financial activities are properly checked.
China’s Dual Concept of Bitcoin:
In Russia’s Shanghai courts, Bitcoin is termed as commodity in China. A thing that would imply that such a Bitcoin cannot be an individual’s personal asset that one would own or hold. In contrast, activities involving cryptocurrencies like trading, issuing tokens, or even paying with the use of cryptocurrency are illegal financial practices as per laws of China. This regulatory setup creates a paradox in which owning bitcoins is accepted while the larger participation in crypto markets is not.
Specific Legal Cases:
The Shanghai ruling came from a 2017 case; in this case, the issuance contract-declared void-was on the account of financial laws violation. The court however clarified that there is no law barring an individual from holding bitcoins.
Another case from Hunan province dismissed a matter which had USDT, a stable coin, included in it. The court held that such currencies as bitcoin and USDT aren’t regarded as forms of legal tender in China. Contracts relating to such currencies aren’t valid under Chinese law.
Speculative Expectations on China’s Policy Regarding Cryptocurrency:
The general world of cryptocurrencies has been wondering if China might not loosen its ironfisted grip on cryptocurrencies, especially in the wake of very progressive crypto policies being seen in Hong Kong.
Hong Kong shows friendlier cryptocurrency regulations, contrary to the statewide prohibition on the country mainland.