For the first time, a Chinese court has accepted to hear a Bitcoin financing case. Wuchang District People’s Court in Hubei Province of Central China accepted to put on a file, a loan issue said to be caused by a Bitcoin pledge.
As contained in a report, the defendant pledged a certain amount of BTC to borrow funds from the plaintiff purposely to bet on the rise of Bitcoin.
However, when Bitcoin saw great upsides in 2018, the plaintiff moved to liquidate the fund, but he suffered a tangible loss.
As contained in the report, the defendant, who does not accept the loan relationship, is being sued for “breach of contract”.
According to a lawyer, the case marks the first time a Chinese court would be recognizing the financial attributes of Bitcoin.
Bitcoin is a property, Says Chinese Court
In June, Bitcoin was also legally recognized as a cryptocurrency by Hangzhou Internet Court in China.
The court, over a matter regarding a collapsed exchange and its users, ruled that Bitcoin is an asset.
A report by a local outlet indicated that Wu bought 2.675 BTC in 2013 from FXBTC but could not access the platform again in 2017.
While attempting to access the platform, Wu discovered the platform was no longer in existence, and could not access the fund or the owners of the platform.
He filed a lawsuit alleging FXBTC owners of not notifying users before closing down the platform. Wu demanded a compensation of 76,300 RMB ($11,000).
While the court rejected claims by the plaintiff, it acknowledged that Bitcoin is a commodity since it carries enormous value.
Chinese President is ready to adopt Blockchain
The widespread news of a Chinese court accepting to hear a court case related to Bitcoin came on the heels of several Chinese cryptocurrency adoption news.
China, at the moment, is racing to be the hub of blockchain in the world. The country’s president, Xi Jinping, has said every stratum in China is to be placed on the blockchain.
The move is to stay ahead of the U.S, whose president is not a fan of cryptocurrency coupled with the country’s congress stiff measures on Facebook’s cryptocurrency, Libra.
As well, China’s congress has passed the cryptography law on Saturday to boost the adoption of cryptocurrency across the country.