TechFlow news — The Beijing Arbitration Commission has issued a ruling on a dispute case involving the entrusted management of Bitcoin. The Commission stated that virtual currencies such as Bitcoin are considered virtual assets protected by law. Currently, there is no law or administrative regulation in China that prohibits Bitcoin trading activities, nor does it ban all transactions with virtual currencies as their subject matter. Instead, what is prohibited are virtual currency-related business activities that constitute illegal financial operations. In this particular case, the contract does not fall under the explicitly prohibited categories of illegal financial activities or token issuance financing, and therefore is not subject to those restrictions.
The Beijing Arbitration Commission also noted that existing regulations merely emphasize that virtual currencies cannot be circulated as legal tender, but do not completely prohibit their use as virtual property in transactions. Only when business activities involve illegal financial operations should they be regulated.
