Judge in Shanghai Calls Cryptos ‘Commodities,’ But Cautions Against Speculation and Crime

Sun Jie, a judge in Shanghai, recently published an article addressing the legality of cryptocurrency issuance in China. Judge Sun described cryptocurrencies as commodities with attributes similar to property.

According to Cointelegraph, a blockchain news outlet, Sun clarified that while cryptocurrencies do not qualify as legal tender, they should be viewed as virtual commodities with property-like characteristics. He explained that individuals in China can hold cryptocurrencies, but commercial entities are prohibited from trading cryptocurrency or issuing their own tokens.

Sun also warned that speculative activities involving cryptocurrencies, such as Bitcoin, could disrupt economic and financial stability. He noted that the use of cryptocurrencies as a tool for illicit activities, including money laundering, illegal fundraising, fraud, pyramid schemes, and other criminal activities, is more concerning. Sun concluded that the law may not fully protect individuals and businesses participating in cryptocurrency transactions.

In 2017, China ordered the closure of all cryptocurrency exchanges, and in 2021, the People’s Bank of China, along with 10 other government agencies, tightened regulations on cryptocurrency trading. Despite these actions, cryptocurrency ownership remains legal in China.