District court of Beijing dismissed the case about a group of Chinese bitcoin exchanges, deciding that in the absence of compelling evidence of illegal trading individuals are responsible for the actions as traders.
As was first noted in the edition of the Beijing Morning Post, Mr. Wang lost 400,000 yuan (about 61 US $ 500) to trade bitcoins. After this blow of fate Wang tried to sue the group of the bitcoin exchanges (the most famous of these is Huobi, one of the largest bitcoin exchanges in the region) to compensate for losses.
Wang States that according to the definition that Karl Marx proposed in the first part of Capital, bitcoin should not be attributed to the goods. Marx wrote that a product must have use value and exchange value, but Wang believes that if bitcoin is not tangible, this definition does not concern him. Consequently, the trade of cryptocurrency should be illegal, and the exchange must return his money.
However chaganski district court of Beijing decided that the plaintiff did not provide evidence of illegal working Huobi and other exchanges, finding him responsible for the risks associated with bitcoin trading.
“There is no law prohibiting investment and trade bitcoins, — this court said, according to the translation of user cnLedger — people have the right freely to participate in bitcoin trading at your own risk”.
However, the judge noted that bitcoins produces not the state, and investors should not blindly follow the trend.
The decision was taken a few months after regulators from the Central Bank ordered the closure of the mainland bitcoin exchanges in China as a result of a total ban on primary placement of coins (ICO), adopted a few days before.
Some exchange went from the mainland and started working in other regions. For example, the headquarters of the exchange Huobi moved to Singapore and plan to open a branch in Japan. The BTCC also moved outside of London.
Recently, local media announced the desire of regulators to make China a less favourable country for mining cryptocurrency. At the moment in China unreasonably large number of miners. In practice, a complete ban is not in effect, but it is likely the regulators will ask local authorities and utilities to cancel preferential treatment for mining companies, including preferential tariffs for the use of electricity and tax incentives.