As reported by CnLedger, a trustworthy cryptocurrency news source in China, the country’s merchants can legally accept crypto for a payment method.
1/ Chinese court confirms Bitcoin protected by law. Shenzhen Court of International Arbitration ruled a case involving cryptos. Inside the verdict: CN law does not forbid owning & transferring bitcoin, which should be protected by law bc its property nature and economic value.
— cnLedger (@cnLedger) October 26, 2018
In nature, Wu explained that due to the decentralized nature of Bitcoin which offers financial freedom and financial value to the owner, the advantage could be recognized as a property.
“Chinese court confirms Bitcoin is protected by law. Shenzhen Court of International Arbitration ruled a case involving cryptos. Inside the verdict: CN law does not forbid owning & transferring bitcoin, which should be protected by law because ofits property nature and economic value.”
Therefore, the court emphasized that no matter the legality of Bitcoin along with other significant cryptocurrencies, the flow and also payment of Bitcoin is not illegal. That means merchants can openly accept cryptocurrencies as a payment method without breaking the local law.
“In the arbitrator’s view, whether or not bitcoin is legal, the circulation and the payment of bitcoin is not illegal. Bitcoin does not have the same rights as fiat, but that does not mean that holding or paying with crypto is illegal.”
Earlier this month, China’s earliest technology book Beijing Sci-Tech Report (BSTR), a respected media company in the nation, released its own plans to accept Bitcoin for its annual subscription to promote the usage of their blockchain and practical use instances of the prominent cryptocurrency.
BSTR disclosed that beginning 2019, the yearly subscription to its magazine will be offered at a price of 0.01 BTC, worth around $65. If the purchase price of BTC rises substantially in the long run, the book stated that it will compensate its customers.
Many hotels in major cities in China also have started to accept cryptocurrencies, one of which branded itself as Ethereum Hotel, providing discounts and concessions to people that cover their services using Ethereum.
What Does This Prove About China?
In consideration of China’s optimistic stance towards blockchain engineering and positive remarks regarding the sector created by government agencies, it’s become more apparent that the authorities put a blanket ban on cryptocurrency trading to keep the devaluation of the Chinese yuan and to restrict speculation on the market.