@daily_btc_lore | Daily Bitcoin History Threads

July 18, 2019 | 7 years ago today

Hangzhou Court Rules Bitcoin Is Legally Protected PropertyHangzhou Court Rules Bitcoin Is Legally Protected Property

In September 2017, China banned Bitcoin exchanges and ICOs outright. Platforms shut down overnight, trading volume evaporated, and the state's message was unmistakable: Bitcoin had no legal standing in China's financial system. Two years later, China's own courts disagreed.

https://cryptobriefing.com/bitcoin-declared-legal-commodity-in-chinese-court/

The Case That Produced the RulingThe Case That Produced the Ruling

Mr. Wu had deposited 2,675 Bitcoin on FXBTC, a Chinese exchange, before the 2017 crackdown. When FXBTC shut down in 2018 as a direct result of that regulatory action, his coins went with it. He sued for their return. The court applied a three-part test for property under Chinese law: the thing must have value, be scarce, and be disposable. Bitcoin met all three. Wu still lost — he couldn't prove the account was his — but the principle stood.

The Contradiction That Never ResolvedThe Contradiction That Never Resolved

The People's Bank of China moved quickly: "Bitcoin is virtual property, but it's not fiat money." Courts would protect a property interest; the state would not permit trading or speculation. China's 2021 crackdown banned mining and declared all transactions illegal, yet courts kept affirming that citizens held valid property rights in Bitcoin they already possessed. You couldn't mine it, buy it, or sell it. But if someone took yours, the law was on your side.

The Hangzhou ruling confirmed that Bitcoin's existence as property was more durable than any single regulatory action against it.

Part of an ongoing series on Bitcoin history. This event falls on July 18, 2019.