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Lawsuit Against Chinese Cryptocurrency Exchanges Dismissed

Huobi was one of the exchanges being sued.

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Chinese exchanges are not operating illegally and will not be sued, Beijing Haidian District Court ruled on Monday.

Mr. Wang sued exchanges including Huobi after losing ¥400,000 ($60.000) while trading Bitcoin. In an attempt to recover his holdings, Wang claimed that “Bitcoin does not exist, according to Marxism it has no value”. He went on to say that all past trades “should be invalidated”.

Wang lacked evidence against the legality of the exchanges. The court also pointed out that everyone is responsible for their own decisions while trading Bitcoins. According to the judgement, the government does not issue Bitcoin, but no Chinese laws exist to forbid cryptocurrency trading or investment. Everyone has the freedom to invest in cryptocurrencies, but they do so “at their own risk”.

Not only did China ban cryptocurrency exchanges such as Huobi in 2017, but also declared ICOs illegal. According to National Internet Finance Association of China, “The number of projects that have been launched in the name of ICO (Initial Coin Offerings) has grown rapidly in the country, disrupting the socioeconomic order and creating a greater risk danger.”

China also recently advised Bitcoin miners to “make an orderly exit” from the country because “huge amounts of resources and stoked speculation of virtual currencies” were being exhausted in the process. So, this decision in Bitcoin’s favor by China’s district court gives a bit of hope to cryptocurrency users.

Image Credit: Deposit Photos

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