(Kitco News) – The regulatory landscape in China has become a bit more complicated as a Chinese court has ruled that citizens can still trade cryptos despite the country’s ban on digital asset services and cryptocurrency trading.
According to a recent decision of the Beijing Intermediate People’s Court Number One, investors are allowed to trade cryptocurrencies, but advised that they should be treated as virtual assets instead of currencies.
The decision stems from a case involving a crypto loan that was made using Litecoin (SLD) in 2015. Zhai Wenjie reported that he loaned his friend Ding Hao 50,000 Litecoins with the agreement that Hao would pay 1,000 LTC in monthly interest.
According to the court, since Litecoin is not issued by a monetary authority and is not backed by legal and financial frameworks, it cannot be treated as a currency.
“According to the actual administrative regulations and cases, our country only denies the monetary attributes of virtual currency and prohibits its circulation as currency, but virtual currency itself is virtual property protected by law,” the official said. court.
The judge handling the case cited the absence of laws prohibiting the perception of Litecoin as an illegal asset, which led the judge to rule in favor of the plaintiff and ordered Hao to return the LTC to Wenjie.
Despite the ban on cryptocurrency services in China, Data from Chainalysis shows that Chinese citizens are increasingly using centralized services to access crypto, suggesting the ban is being loosely enforced. China currently ranks tenth globally in terms of crypto adoption.
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Thailand bans crypto lending and staking products
Meanwhile, in Thailand, a Thursday press Release from the country’s Securities and Exchange Commission (SEC) says the regulator has banned cryptocurrency firms from offering digital asset lending and staking products or custodial services.
The reason for this decision is to protect merchants and the general public from commercial risks associated with companies offering these services and to protect users from using services that they believe meet regulatory requirements – but do not.
The move follows the collapse of several notable lending, staking and deposit platforms, including decentralized finance protocol Terra and centralized finance providers Celsius and Voyager.
The SEC cited a widespread lack of risk management by crypto players and liquidity issues that led to some providers shutting down their services and suspending the withdrawal of digital assets as reasons the move was necessary.
Thai authorities have tightened their grip on the crypto industry in the country since coming under fire for failing to protect local investors from Zipmex, a licensed crypto exchange that temporarily suspended withdrawals in July.
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