- Wenjie is entitled to the protections accorded to the owner of virtual property.
- In its ruling on cryptocurrencies, the court said that although LTC is a “network currency.”
According to a recent report, a Chinese intermediate court reiterated a lower court’s decision that litecoin is a virtual property protected by Chinese law. The court made clear that the applicable administrative legislation in the nation does not prohibit the use of virtual currencies as a whole, just their circulation and use as money.
The court record states that on December 5, 2014, Hao got 50,000 LTC from Wenjie and was required to pay this back in four instalments. According to the filing in court, the last instalment of 8,334 LTC was due on October 15, 2015.
But Hao contended that the lower court made a mistake in ruling in favor of Wenjie. Citing rules published by the Bank of China and other relevant authorities. That declare virtual money is not protected by the law. Hao also argued that his loan arrangement with Wenjie was illegal since it included “prohibited financing behaviour.”
However, the Chinese intermediate court disagreed with Hao. Stating that the rules he referenced are essentially “regulatory opinions” and do not relieve him of his responsibilities.
In its ruling on cryptocurrencies, the court said that although LTC is a “network currency.” It still lacks crucial features of a currency such as “legal compensation and coercion.” However, the court ruled that the cryptocurrency satisfies the definition of virtual property. And thus Wenjie is entitled to the protections accorded to the owner of virtual property.
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