February 14, 2025<\/p>\n\n\n\n
By Anjali Kochhar<\/p>\n\n\n\n
In a significant ruling, the High Court of Shandong Province in China has declared that investments in cryptocurrencies are not protected under domestic law. The decision follows a case involving a Chinese investor who lost funds after purchasing digital assets overseas. The ruling reinforces China’s long-standing stance against cryptocurrency transactions, warning investors that digital asset investments, whether made within the country or abroad, do not have legal safeguards.<\/p>\n\n\n\n
The case dates back to 2017, when the investor put 70,000 yuan (around $10,750) into cryptocurrency based on a recommendation from friends. However, in 2018, the People\u2019s Bank of China reinforced its ban on financial institutions facilitating crypto transactions. As a result, the investor\u2019s account was frozen, and the funds became inaccessible. The investor then filed a lawsuit in Jinan, arguing that the loss was due to fraudulent practices.<\/p>\n\n\n\n
In January 2021, the intermediate court dismissed the case, stating that cryptocurrencies had no legal status in China, and therefore, the fraud claim was invalid. The plaintiff appealed, but in March 2021, the ruling was upheld. The case was then escalated to the High Court of Shandong Province, which confirmed the previous decisions. The court stated that “investing or trading cryptocurrency isn’t protected by law,” making it clear that Chinese citizens cannot seek legal recourse for losses related to crypto investments.<\/p>\n\n\n\n
This ruling is consistent with China’s firm anti-crypto policies. Since 2013, the Chinese government has prohibited financial institutions from handling cryptocurrency transactions. In 2021, the restrictions tightened further when authorities banned crypto mining, forcing many mining operations to move overseas. The government has continuously warned against the risks of crypto trading, citing concerns over financial stability, money laundering, and capital outflows.<\/p>\n\n\n\n
Interestingly, legal views on cryptocurrencies in China have been inconsistent. In 2019, the Hangzhou Internet Court ruled that Bitcoin qualifies as virtual property, giving it some level of legal recognition. However, a 2020 ruling by the Changting People\u2019s Court in Fujian province contradicted this by stating that digital assets have no legal protection.<\/p>\n\n\n\n
This latest ruling highlights China’s unwavering position against cryptocurrencies. It serves as a warning to investors, reaffirming that engaging in digital asset trading comes with significant legal risks. With China maintaining a strict stance on crypto, investors will need to exercise caution, as their investments remain unrecognised and unprotected under the law.<\/p>\n\n\n\n
About the author<\/strong><\/strong><\/p>\n\n\n\n Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" February 14, 2025 By Anjali Kochhar In a significant ruling, the High Court of Shandong Province in China has declared that investments in cryptocurrencies are not protected under domestic law. The decision follows a case involving a Chinese investor who lost funds after purchasing digital assets overseas. The ruling reinforces China’s long-standing stance against cryptocurrency […]<\/p>\n","protected":false},"author":4,"featured_media":7153,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-7148","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uncategorized"},"yoast_head":"\n