Shanghai court recognizes the value of bitcoin, setting a precedent for the future

The Shanghai court mediated between the two conflicting parties. The court ruled that bitcoin falls under the laws relating to virtual reality rights, as it has a certain value, is in short supply, and can be traded on the market.

The court’s statement was a response to a two-year-long litigation between the parties, in which an individual demanded that the other party return 1 bitcoin. Lawyers believe that such a decision may become a precedent in the settlement of cryptocurrency cases.

This is not the first «recognition» of the value of bitcoin — in 2018, the Chinese Arbitration Court also ruled that bitcoin should be legally protected as property with economic value.

As a reminder, cryptocurrency trading and mining are banned in China, and therefore determining the real value of the No. 1 cryptocurrency in the event of litigation may still be a challenge.