Shanghai Court Recognizes Cryptocurrencies as Property
The Shanghai High Court has declared that cryptocurrencies have “property attributes” according to Chinese law, affirming their significance as virtual commodities. However, the court maintained China’s strict prohibition on utilizing crypto for ventures such as token issuance and speculative trading, based on the court’s ruling.
This decision came about due to a disagreement between an agricultural development company and an investment management firm over a failed token launch. The case, resolved by the Songjiang District People’s Court, showcases the ongoing conflict between China’s acceptance of cryptocurrencies as property and its crackdown on financial activities related to them.
The dispute originated in 2017, during a surge in the cryptocurrency market. The agricultural company, known as Company X in legal documents, aimed to release tokens and raise funds through a “Blockchain Incubation Agreement” with the investment firm, referred to as Company S.
As per the agreement, Company S was responsible for creating a white paper and facilitating the token launch using blockchain technology. In return, Company X paid a service fee of 300,000 yuan ($41,000).
