The Shanghai High Court has classified bitcoin as a virtual asset with legally protected economic value.

“Based on established practice, the People’s Court has determined that bitcoin meets property characteristics and has a certain economic value. Legal provisions must be enforced to protect it.”says document.

The statement relates to a case involving Cheng Mou, who filed a lawsuit with the Shanghai Baoshan District People’s Court on October 10, 2020, demanding the return of 1 BTC from defendant Shi Moumou.

After the hearing on February 23, 2021, the court ordered the defendant to return the money within ten days of the verdict. However, he refused to make the payment, leading the plaintiff to seek legal action. Later, the Baoshan court decided to mediate between the two parties.

Liu Yang, an expert from the Deheng Law Firm in Beijing, told Bitcoin.com that the Supreme Court’s testimony will be used as a precedent for Bitcoin-related civil disputes.

Recall that in September 2021, the People’s Bank of China, together with nine government agencies, issued a statement in which they classified transactions with cryptocurrencies as illegal financial activities.

In early 2019, a virtual property status similar to bitcoin was granted by the court of the city of Hangzhou.