In a landmark development for digital asset recognition in China, the Shanghai No. 2 Intermediate People's Court has formally acknowledged the uniqueness and non-replicability of Bitcoin, distinguishing it from other virtual currencies like Q币 (Q-coins). This judicial validation marks a significant shift in how cryptocurrencies are perceived under Chinese law—despite the country's strict ban on crypto trading and mining.
While China continues to prohibit financial institutions from engaging in cryptocurrency-related services, this ruling underscores that individuals may still hold and transfer digital assets, reinforcing their status as virtual property with recognized economic value. The decision is already influencing market sentiment, with high-profile figures like TRON founder Justin Sun seeing substantial growth in their crypto portfolios.
Judicial Recognition of Bitcoin’s Unique Properties
The Shanghai court emphasized that Bitcoin possesses scarcity, exclusivity, and verifiable ownership—characteristics that align more closely with tangible assets than simple digital data. In a detailed opinion, Ren Suxian, a senior judge and legal expert at the court, stated:
“With the development of internet technology, digital currencies represented by Bitcoin exhibit uniqueness and cannot be duplicated. Unlike Q币 or game tokens, Bitcoin’s relative scarcity is widely acknowledged, and its property attributes can no longer be ignored in social or financial contexts.”
This perspective challenges traditional views that treat all digital data as infinitely replicable and thus devoid of intrinsic value. Instead, the court recognizes that blockchain technology ensures each Bitcoin is traceable, scarce, and securely owned, making unauthorized access not just a data breach but a theft of property.
Although China does not classify Bitcoin as legal tender, the ruling affirms it is not a prohibited item, and its property rights cannot be outright dismissed. This nuanced stance opens the door for future civil disputes involving crypto assets to be adjudicated based on property law principles rather than solely under cybercrime statutes.
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Why This Matters for Crypto Investors
Even in a country with stringent crypto restrictions, judicial recognition of Bitcoin’s scarcity and ownership control strengthens its legitimacy worldwide. When courts acknowledge that stealing Bitcoin constitutes theft of property—not just data—it elevates the asset class in legal and financial discourse.
Moreover, the fact that individuals can legally transfer cryptocurrencies among themselves—even if exchanges are banned—means peer-to-peer ownership remains intact. This creates an underground but resilient ecosystem where digital assets retain utility and value.
For international investors, this signals that regulatory clarity doesn’t always require full legalization. Legal acknowledgment of property rights can provide a foundation for future financial integration, especially as more jurisdictions grapple with how to regulate decentralized assets.
Justin Sun’s Portfolio Soars Amid Market Volatility
At the same time, TRON founder Justin Sun made headlines after blockchain analytics platform Arkham Intelligence revealed his known wallet holdings surged by over 50% in one month, reaching more than $1.1 billion by mid-September.
On August 19, Sun’s portfolio was valued at approximately $733 million. By September 19, it had climbed past $1.1 billion—highlighting both his strategic positioning and the broader market rebound during that period.
His largest holding? Wrapped Staked Ethereum (wstETH), valued at around $315 million, representing nearly 169,000 ETH staked through Lido. This underscores a growing trend: major players are not only investing in crypto but actively participating in staking and decentralized finance (DeFi) to maximize returns.
While Bitcoin fluctuated around $26,000 during this time, Sun’s diversified exposure to Ethereum-based assets amplified gains as ETH outperformed in the short term. His rapid accumulation also reflects confidence in long-term blockchain adoption—even amid regulatory uncertainty.
Market Outlook: Can Bitcoin Reclaim $27,000?
As of late September, Bitcoin dipped to $26,083, with bears maintaining short-term control. Despite brief rallies above the 20-day exponential moving average ($26,523), momentum failed to sustain upward pressure.
Technical indicators suggest a battleground between bulls and bears:
- A flat 20-day EMA and neutral RSI indicate equilibrium.
- A break below $26,200 could signal bearish dominance, potentially dragging BTC down to strong support at $24,800.
- Conversely, a move above the 50-day SMA ($26,948) would reinvigorate bullish sentiment, possibly paving the way toward $28,143.
On the 4-hour chart, price action has hovered below key moving averages, yet sellers haven’t been able to accelerate downward momentum—suggesting selling pressure is weakening at lower levels. If buyers push above resistance, a rebound to $27,400 and beyond remains feasible.
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Wall Street’s Inevitable Embrace of Bitcoin ETFs
Anthony Scaramucci, founder of SkyBridge Capital, remains bullish despite acknowledging ongoing macroeconomic headwinds—rising interest rates, SEC enforcement under Gary Gensler, and negative media narratives.
However, he predicts a transformative shift once spot Bitcoin ETFs gain approval in the U.S.:
“Every Wall Street firm will have a Bitcoin ETF in their arsenal. And when Wall Street has something in its arsenal, they sell it to clients. That’s when adoption goes mainstream.”
Scaramucci draws parallels between today’s skepticism toward crypto and 1990s doubts about the internet. Just as his generation drove internet adoption, he believes Gen Z and Millennials will propel Bitcoin into the financial mainstream.
He reiterates his long-standing view: “Bitcoin is better than gold.” With finite supply, portability, verifiability, and growing institutional custody solutions, BTC offers a superior store of value in a digital age.
And once ETFs launch, Scaramucci expects trillions in capital to flow into Bitcoin through retirement accounts, wealth management platforms, and retail investment products.
Frequently Asked Questions (FAQ)
Q: Is cryptocurrency legal in China?
A: No—China bans financial institutions from offering crypto services and prohibits crypto exchanges and initial coin offerings (ICOs). However, individuals can still hold and transfer digital assets privately.
Q: Does this court ruling mean China is reversing its crypto ban?
A: Not exactly. The decision doesn’t lift any bans but acknowledges Bitcoin’s status as virtual property in civil and criminal cases—offering legal protection without regulatory endorsement.
Q: How can someone own Bitcoin if exchanges are banned?
A: Through peer-to-peer transactions and self-custody wallets. Ownership doesn’t require centralized exchanges; users can receive and store crypto via private keys.
Q: What makes Bitcoin different from Q币 or game tokens?
A: Bitcoin is decentralized, scarce (capped at 21 million), and secured by blockchain consensus. Unlike company-issued virtual points (like Q币), no single entity controls it.
Q: Could this influence other countries’ legal frameworks?
A: Yes. As major economies develop crypto regulations, judicial precedents like this help shape global standards for treating digital assets as property.
Q: Is it safe to invest in crypto given regulatory risks?
A: All investments carry risk. Diversification, secure storage (cold wallets), and staying informed on regulations can help manage exposure.
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Final Thoughts
China’s judicial recognition of Bitcoin’s uniqueness may seem subtle—but it’s profound. It affirms what many in the crypto community have long argued: digital scarcity has value, and blockchain-based ownership is real.
Combined with surging holdings from influential figures like Justin Sun and growing institutional anticipation around spot ETFs, the stage is set for broader acceptance—even in restrictive environments.
As legal frameworks evolve globally, investors should focus on platforms that prioritize security, transparency, and compliance. The future of finance isn’t just digital—it’s decentralized.
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