- China’s relation with cryptocurrencies has not been friendly since the ban in September 2017.
- “Xiao considers the occasional exchange of bitcoins between individuals and individuals is legal.”
In a new research released by Council Member at the Bank of China’s Law Research Association Sa Xiao reveals that the Chinese people can still own Bitcoin within the law. Owning Bitcoin in China is not illegal as it has been believed to be since the ban came to effect. According to CnLedger, Chinese crypto news:
“It is legal to own bitcoins in China’ says Sa Xiao, Council Member at Bank of China Law Research Association, cited by The Beijing News. Besides, Xiao considers the occasional exchange of bitcoins between individuals and individuals is legal.”
However, the relationship between China and cryptocurrencies has not been a subtle one. Starting September 15, 2017 crypto exchanges in what used to be the leading market for digital assets were ordered to stop operations. Shortly after the trading activities were banned, activities related to Initial Coin Offerings (ICOs) were abolished as well. Ever since there has been law enforcement crackdown to rid the nation of any trading activities from time to time.
“Xiao’s views were based on the current legal framework which protects people’s rights of virtual properties (Bitcoin included). Occasional P2P tradings of bitcoin are in nature ‘disposition right’, one of the rights of ‘ownership’. Therefore, owning & occasional P2P trading is legal.”