A Shanghai court has clarified that personal ownership of
cryptocurrency is legal in China. The statement comes during a record-setting
rise in Bitcoin prices. Bitcoin enthusiasts are now speculating whether the
price will cross $100,000 in the coming days.

Shanghai Court on Cryptocurrencies

This development provides legal clarity for cryptocurrency
holders amid Beijing’s crackdown on commercial crypto activities.

Sun Jie, a judge at the Shanghai Songjiang People’s Court,
published an article this week on the Shanghai High People’s Court’s WeChat
account. He stated that individuals are not prohibited from holding
cryptocurrencies.

However, business activities involving cryptocurrencies
remain banned to protect financial stability. Sun highlighted that
cryptocurrencies, as virtual commodities with property attributes, are not
inherently illegal under Chinese law.

🇨🇳 JUST IN: Shanghai judge says #Bitcoin and crypto are legal for individuals to own but bans commercial token issuance and investments. pic.twitter.com/qfoQ3gUZg6

— Cointelegraph (@Cointelegraph) November 21, 2024

This legal position stems from a case involving a dispute
between two companies over an initial coin offering, which is categorized as
illicit financing. The judge emphasized that speculative trading activities
disrupt economic order and are thus strictly regulated.

Bitcoin Eyes $100,000 Mark

Bitcoin’s recent rally has added to the global spotlight on
cryptocurrencies. The cryptocurrency surged past $99,000 this week, driven
partly by news of former U.S. President Donald Trump’s re-election and his
promise to adopt a pro-crypto stance.

As of writing, Bitcoin is traded at around 99500.00. The H4
chart shows that the price has been surging toward the North by obeying a
trend line. If the price consolidates, it may find support at the flipped level
of 98,000. A bullish reversal pattern could attract buyers to go long,
potentially driving the price toward the key 100,000 mark.

BITCOIN Looks read for $100000 – #BTCUSD TradingView https://t.co/Wwq1hz3muR

— Trendonomics by Harsh Dixit (@TrendonomicsHD) June 22, 2024

Former Official Faces Charges

China’s restrictions on cryptocurrency activities began in
2017 with a ban on initial coin offerings and crypto exchanges. These measures
escalated in 2021 with a prohibition on Bitcoin mining and a broader ban on
crypto-related businesses.

Despite these restrictions, some courts in China
have previously ruled that cryptocurrencies qualify as personal property under
existing laws.

Separately, the Central Commission for Discipline Inspection
announced this week that Yao Qian, former head of the People’s Bank of China’s
digital currency research institute, was involved in a bribery case involving
cryptocurrency. This case marks a setback for crypto advocates in China,
especially given Yao’s earlier pro-crypto remarks.

Despite local legal clarifications, China’s regulatory
stance on the broader crypto industry remains restrictive. Experts like Zhu
Guangyao, China’s former finance vice-minister, have called for opening the
market to ensure China remains competitive in the global digital economy.

This article was written by Tareq Sikder at www.financemagnates.com.