Bitcoin transactions may start in China again

The Chinese market is always ripe with cryptocurrency news every passing day. Less than a year ago the country’s authorities put a ban on all cryptocurrency trading activities and Initial Coin Offerings in the country. This, like all other cryptocurrency restrictions in other countries, led to a serious plummet of cryptocurrency transactions within the Chinese ecosystem and greatly affecting the prices of cryptocurrencies globally. Bitcoin was affected the as the number of people in China who own and/or are interested in and trade in the crypto have always been enormous since the digital token’s start in 2008. This hostility to cryptocurrency subsequently led to the banishment of Binance from China, a move which ended up in the exchanger’s favour – much more than expected.

Like that wasn’t enough a new set of draft rules released this month indicate that blockchains are also going to be regulated to the point of there being no anonymity on the network. The ban also led many to believe that all sorts of cryptocurrency related activities were banned in the country, even to the point of owning digital assets like cryptocurrencies.

Contrary to previous notions held by many, a court in Shenzen has ruled that Bitcoin transactions can go on – seemingly – which means that we can expect to see Bitcoin transactions take an upward graph plotting and a reflection in prices in the coming weeks.

A Bitcoin gavel is seen on a desk at the Coinbase Inc. office in San Francisco, California, U.S., on Friday, Dec. 1, 2017. Coinbase wants to use digital money to reinvent finance. In the company's version of the future, loans, venture capital, money transfers, accounts receivable and stock trading can all be done with electronic currency, using Coinbase instead of banks. Photographer: Michael Short/Bloomberg

CnLedger mentioned that there were ongoing court proceedings regarding the fate of Bitcoin in the Chinese market earlier this year at the Shenzhen Court of International Arbitration. CnLedger now via a Twitter post claims that the court has ruled in favour of Bitcoin in that Chinese law itself actually allows bitcoin transactions in that they (cryptocurrencies) are intrinsically “property” and have “economic value”.

One major concern of many is that since Shenzhen is an economically geared court its ruling may have been in favour of the financial asset. However, the court also made it clear that the cryptocurrency (Bitcoin) isn’t a legal currency like fiats either.  It mentions that Bitcoin “can bring economic benefits to parties” and shouldn’t be thrown aside without appropriately considering the benefits it could be to the financial sector.

What is most important to note here is that Shenzhen’s ruling is just a tiny light in the dark for cryptocurrency transactions in the Asian country. Beijing has in recent months gone hard on cryptocurrency exchangers and it doesn’t look like this ruling by Shenzhen alone will revert their stand. Nonetheless, this could be a step to re-establishing a booming cryptocurrency market in China.

Featured Image of gavel via Bloomberg

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