Chinese Judge Cites 'High-Pressure Crackdown' On Speculation In Judgment Declaring Crypto Ownership Legal As Bitcoin Moves Past $97K

Amid Bitcoin’s BTC/USD record-breaking run, a Shanghai court has opined that owning cryptocurrencies as an individual is not against Chinese law.

What Happened: Judge Sun Jie of the Shanghai Songjiang People's Court offered legal clarification for cryptocurrency holders in mainland China, the South China Morning Post reported Thursday.

In an article published on the official WeChat account of the Shanghai High People's Court, Sun declared that it is “not illegal for individuals to hold cryptocurrency,” even as the blanket ban on cryptocurrency transactions enforced in 2021 remains in effect.

“That is why laws and regulations always maintain a high-pressure crackdown on speculative activities in cryptocurrency trading," Sun said, emphasizing the distinction between holding and trading the asset.

This statement came as part of a case review involving a lawsuit between two companies over an initial coin offering, which is considered illegal in China, along with cryptocurrency mining.

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Why It Matters: This legal clarification comes amid the complex backdrop of China’s stance on cryptocurrencies. Despite a ban on cryptocurrency trading and mining, China still controls over 50% of the global Bitcoin hash rate, indicating the Asian giant’s continued influence over Bitcoin mining pools.

In fact, there have been reports of a growing trend of Chinese investors finding alternative ways to engage in the cryptocurrency market, raising questions about China's real intentions.

Earlier in September, Zhu Guangyao, China's former Vice Minister of Finance, recently urged the Xi Jinping administration to study cryptocurrencies in light of global changes and policy adjustments.

Price Action: The judge’s opinion comes as Bitcoin, the world’s largest cryptocurrency, raced past $97,000 to hit a new record high, according to data from Benzinga Pro. The trillion-dollar asset has surged 45% since pro-cryptocurrency Donald Trump emerged victorious in the U.S. presidential elections.

Image via Flickr

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.