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Chinese Court: ETH Is Not a Currency but a General Property

September 30, 2018 02:01:58

A Case Going Back and Forth

The Shanghai Hongkou District People’s Court was seized with a case involving a transaction of 20 ETH across multiple parties.

Reportedly, before the country banned initial coin offerings and cryptocurrency transactions, a technology company in Beijing launched an ICO raising Ethereum and Bitcoin. The plaintiff in the case is an investor, who is seeking a refund of 20 ETH that he had invested in the defendant’s ICO.

Purportedly, after the country instituted the ban on cryptocurrencies, the defendant initiated a refund of the 20 ETH. However, due to an “operational error,” the ETH was sent to a wrong account that was different than that of the plaintiff. The latter is now seeking monetary reparation for the damages he has sustained, arguing that the third-party which received the ETH did so without any merit, hence constituting unjust enrichment.

ETH is Property

In its findings, Shanghai Hongkou District People Court has laid out a few key points, among which most notably is the following:

Although the state does not recognize the monetary attributes of so-called “virtual currency” such as the Taikoo currency, it does not deny that the Ethereum is generally protected by the law as a property in the general legal sense.

This seems like another legislative victory for cryptocurrency proponents, following the news of earlier this month that the country allows evidence authentication through blockchain-based technologies.

Despite the country’s continuous clampdown on cryptocurrencies, traders in China are working hard to continue being a part of the field, using an array of creative ways to stay involved. - -

Category: News

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