China – October 2021

Cryptoassets and Other Virtual Assets as Property under Chinese Private Law

This briefing examines the judicial treatment of virtual assets eg cryptoassets and virtual currencies as property under Chinese private law. The article finds that Chinese courts have shown a willingness to apply orthodox principles applicable to tangible assets to novel virtual assets eg cryptoassets. While some legal uncertainty remains judicial practice indicates that virtual assets are property under Chinese law.

INTRODUCTION

In an increasingly digitalised world it has become increasingly important that legal and regulatory frameworks are “fit and proper” to deal with novel digital assets such as cryptoassets. Guidelines have been issued by the Chinese government and regulators. Notably Chinese financial and payment institutions are restricted from carrying out business related to bitcoin (as confirmed in the 2013 Notice on the Prevention of bitcoin Risks (Notice)).¹ Also payment institutions are prohibited...