Bitcoin and other virtual currencies have grown in popularity, generating legal and economic concerns. As digital assets gain global importance, their legal status and impact on property and economic issues, notably in China, grow. Innovative financial tools like cryptocurrencies have been blamed for encouraging criminality. Illicit virtual currency transactions rose to US$20.6 billion in 2022 from US$8.4 billion in 2020. This worrying growth in criminal activity highlights the need for virtual money and property crime legal clarity. The Chinese government has maintained a strict stance on crypto. Crackdown against miners was the climax of this stance. Today, an opinion article has been published in China Court Daily that has emphasized the need for the legalization of virtual assets as virtual property.
The Power of Blockchain in the World of Cryptocurrencies
As per this article, there are various virtual currency criminal views. To begin, virtual money is electronic data used on the “black market.” Virtual cash is not criminal property until certain legal prerequisites are met. The second approach prosecutes virtual money like drug theft as property. Virtual currencies are banned in numerous locations, depriving property protection.
The third view considers virtual money unlawful and legal. This theory believes that virtual money holders should have property rights unless their assets are illegal. The author of this essay argues strongly for this position.
Virtual money is economically valuable. Fiat cash has fewer applications than virtual currency. Blockchain powers virtual currency and asset circulation, including securities settlement. It provides cryptocurrencies value beyond legal tender.
Additionally, virtual currency has objective exchange value. Blockchain technology creates global peer-to-peer connectivity for Bitcoin and other cryptocurrencies. The price stability of stablecoins like Tether (USDT) is guaranteed by legal money. Decentralization and immutability make virtual currencies ideal for real-world transactions.
China’s Stance on Virtual Currency to Prioritize Stability
Concert tickets, computerized voting systems, game components, and virtual assets are represented by virtual currency. Japan, US, Europe, Australia, and NZ legalize virtual currencies. Global popularity is shown by over 30,000 virtual currency ATMs in 73 countries.
The Chinese government has not legalized virtual currencies for financial stability and crime prevention reasons. Global virtual currency circulation and objective exchange value cannot be disregarded.
Missing virtual currency’s exchange value and designating it as illegal like narcotics might lead to its clandestine national expansion and property loss. Virtual currency theft can be reported as a property violation to speed up asset recovery and victim compensation.
