Chinese Court Confirms Ethereum’s Status as Property
Since April 2020, Chinese judicial authorities have clarified the property status of cryptocurrencies in multiple cases. Among them, the Futian District People’s Court in Shenzhen, Guangdong Province, issued a ruling in a cryptocurrency theft case, recognizing Ethereum (ETH) as legitimate property protected under Chinese law and possessing economic value.This ruling further solidifies the status of cryptocurrency as “virtual property” within the Chinese legal system.
Historical Precedents and Legal Evolution
This is not the first time a Chinese court has recognized the property status of cryptocurrency. Prior to this Ethereum ruling, there had been several landmark cases:
- 2018 Shenzhen International Arbitration Court: Ruled to protect an “Equity Transfer Agreement” involving Bitcoin, Bitcoin Cash, and Bitcoin Diamond.
- 2018 Shanghai Hongkou District People’s Court: Ruled that Ethereum constitutes property protected under Chinese law in the general legal sense.
- 2019 Hangzhou Internet Court: In a Bitcoin-related property infringement dispute, the court recognized for the first time that Bitcoin possesses value, scarcity, and disposability, and should be deemed “virtual property.”
As the legal system has evolved, China’s new Civil Code took effect on January 1, 2021. It expanded the scope of inheritance to include “virtual assets such as Bitcoin” and stipulated that individual property rights (including online virtual assets) are entitled to equal protection, thereby providing a more solid legal foundation for the property status of cryptocurrencies.
Recent Judicial Perspectives and Regulatory Stances
Although China maintains a strict prohibition on cryptocurrency-related financial activities and transactions, judicial authorities have consistently recognized the property attributes of cryptocurrency held by individuals.
- In 2023, the Xiamen Local Court in Fujian Province issued an opinion stating that cryptocurrency possesses “economic attributes” (including utility and exchange value), that its value objectively exists in legitimate circulation on overseas markets, and that it should be regarded as property.
- November 2024, Judge Sun Jie of the Songjiang District People’s Court in Shanghai: She explicitly stated that Chinese law does not prohibit individuals from holding cryptocurrency, but treats it as a virtual commodity that lacks the legal value of legal tender and cannot serve as a lawful means of payment or investment.
In a joint statement issued in September 2021, the People’s Bank of China and ten other government departments classified all cryptocurrency-related financial transactions as illegal and banned mining.In February 2026, the People’s Bank of China reiterated that virtual currencies are not recognized as legal tender in China and that related activities are illegal. However, these policies primarily target the monetary attributes and commercial activities of cryptocurrencies, rather than the legality of individuals holding them as property.
International Reactions and Market Interpretations
The international cryptocurrency community has generally responded positively to the Chinese court’s recognition of the value of cryptocurrency assets, viewing it as an indication that, while maintaining strict regulation, China has developed a more nuanced understanding of cryptocurrency’s intrinsic value and property attributes. Although China’s restrictions on cryptocurrency trading and investment remain stringent, this judicial recognition leaves room for potential future policy adjustments.
Trading and Acquisition
Given the strict restrictions on cryptocurrency trading and financial activities in mainland China, users in the region are currently unable to purchase or trade cryptocurrencies through legal and compliant channels. Please be sure to comply with local laws and regulations and fully understand the associated risks.
