As the crackdown of cryptocurrency mining in China continues, Chinese courts have highlighted that that cryptocurrency trading does not fall under the protection of the law as of now.
Official courts of China have been updating about the issue in regards to the ongoing ban on cryptocurrency trading, and it looks like the situation is still very much worse. The courts highlighted how the legal system would be handling any sort of new cryptocurrency-based problems. According to a post published by the High court of the Shandong Province in China, it was said that cryptocurrency is not supported by law as of now when it comes to consumer protection, so it is dangerous to get involved in it.
A case was presented by the high court of Shandong in which the case presenter named Ma had apparently spent more than $10,000 worth of digital currencies, based on a recommendation from 3 other people back in 2017. But later in 2018, when China’s central bank directed payment companies to perform an illegal crypto transaction system check, trading accounts of all four members had been seized, and now Ma wants 3 of the recommenders to make up for all of the wasted investment.
According to the court of Jinan, the tokens being traded were mostly in Bitcoin, which were not allowed to be traded around, so as to support the previous statement, the precious investment was not protected, meaning that Ma would have to suffer the risks alone. Judge Li Xiaoli from the Jinan court stated that since these virtual currencies are not in the protection of the law, so it is very important that investors should stay away from such digital assets.
There have been many cases like these presented in courts in which investors and sellers have been having honest trade issues because digital currencies such as Bitcoin are not under the protection of the law. Many fake traders and scammers are taking advantage of this.
China is maintaining a strict stance against cryptocurrencies and has not stopped cracking down on cryptocurrency mining and trading operations. The government has been using many strategies to implement a complete ban on cryptos, as last month, a firm in the city of Beijing was forced to shut down because of the suspicion that they were involved in providing crypto trading services.