Shanghai court recognises Bitcoin as legal property

A Shanghai court has ruled that cryptocurrencies like Bitcoin (CRYPTO:BTC) are legal to own in China, marking a potential shift in the country’s cryptocurrency policy.

Judge Sun Jie of the Shanghai Songjiang People’s Court stated that individuals are permitted to hold cryptocurrencies, classifying them as a form of property.

"It is not illegal for individuals to hold cryptocurrency," clarified Judge Sun Jie of the Shanghai Songjiang People's Court, adding that China's strict regulations on speculative activities do not constitute a ban on ownership. 

He emphasised that the laws maintain a strong crackdown on speculative trading activities while allowing ownership.

The ruling coincides with Bitcoin’s rapid price surge, consolidating above $98,300 in Beijing and nearing the $100,000 milestone.

Analysts, including deVere Group CEO Nigel Green, predict continued growth, with projections of Bitcoin reaching $120,000 in the first quarter of 2025.

China’s relationship with cryptocurrency remains complex, with a trading ban in place since 2021.

However, this ruling suggests a more tolerant stance toward ownership.

Despite the ban, Chinese miners still contribute over 50% of Bitcoin’s network hash power, and investors remain active in crypto markets.

Polymarket, Ethereum’s (CRYPTO:ETH) largest betting platform, shows a 93% probability for Bitcoin hitting $100,000 in 2024, backed by $6.8 million in betting volume.

While the Shanghai ruling does not lift restrictions on trading, it sets a precedent by recognising cryptocurrency as legal property.

At the time of reporting, the Bitcoin price was $97,237.22.