Law can’t cover crypto losses, China court reiterates

The high court of China’s southeastern Guangdong province has ruled cryptocurrency investment activities are not protected by law, further clarifying that crypto is not a legitimate currency in the mainland.

See related article: China customs seizes 49 second-hand crypto mining rigs for export

Fast facts

  • The Guangdong high court on Tuesday listed a crypto-related virtual asset dispute as one of the 10 key internet cases for 2021.
  • In this case, a group was accused of deleting the private keys for cryptocurrency XIN, leading to an 11.9 million yuan (US$1.9 million) loss for the plaintiff.
  • An internet court in Guangzhou, which handled the case, ruled that XIN did not carry the legitimacy of a fiat currency and related investment activities were not protected by law, leaving investors to cop the losses.
  • In September last year, China outlawed all crypto transactions and crypto mining.
  • The high court of the eastern province of Shandong also said in August that “the behavior of investing or trading cryptocurrency is not protected by law.”
  • However, a Shanghai court in August ruled Bitcoin a virtual property.