In a landmark development for the digital asset space, the Shanghai Second Intermediate People’s Court has formally acknowledged the unique and irreplaceable nature of Bitcoin, reinforcing its status as a distinct form of virtual property. This judicial recognition comes at a pivotal moment, as market sentiment wavers and global interest in cryptocurrency regulation intensifies. Meanwhile, prominent figures like Justin Sun have seen their crypto portfolios surge—highlighting both the volatility and growing legitimacy of digital assets.
The court’s stance marks a significant shift in how digital currencies are perceived within China’s legal framework, even amid the country's ongoing ban on crypto trading and mining. While the government maintains strict controls, this acknowledgment opens new discussions about ownership, property rights, and technological evolution.
Judicial Recognition of Bitcoin’s Unique Status
The Shanghai court emphasized that cryptocurrencies like Bitcoin differ fundamentally from traditional virtual tokens such as Q-coins or game-based currencies. Unlike these easily replicable digital points, Bitcoin possesses scarcity, uniqueness, and intrinsic value—qualities that align more closely with tangible assets than mere data.
As stated by Ren Suxian, a senior judge and member of the Judicial Committee at the Shanghai Second Intermediate Court, “With the development of internet technology, digital currencies represented by Bitcoin exhibit uniqueness and non-replicability. Their relative scarcity is widely recognized, and their property attributes can no longer be ignored—whether in social life or financial contexts.”
This view builds upon a 2022 ruling where a Shanghai court first recognized Bitcoin as virtual property, setting a precedent for future legal cases involving digital asset disputes.
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Despite China’s prohibition on financial institutions engaging in crypto-related activities, the ruling confirms that private transactions between individuals—such as exchanging digital currencies for fiat money—are not explicitly illegal. This creates a nuanced but important space for personal ownership and transfer rights.
Why Bitcoin Stands Apart from Other Virtual Assets
At the heart of the court’s decision is the distinction between data replication and digital scarcity. Traditional digital files can be copied infinitely without loss of quality, undermining their potential as valuable assets. However, blockchain technology ensures that each Bitcoin is:
- Verifiably unique
- Securely traceable
- Immune to duplication
These features allow owners to maintain full control through private keys, enabling secure transfers and payments—similar to physical cash or gold.
Moreover, theft of Bitcoin is increasingly viewed not just as a cybercrime involving data access, but as a violation of property rights. Prosecuting such acts under computer crime statutes alone fails to capture the true nature of the offense: the unlawful appropriation of valuable digital property.
This evolving legal perspective strengthens the argument for treating major cryptocurrencies like Bitcoin as legitimate store-of-value assets, despite their exclusion from formal monetary systems.
A Surge in High-Profile Crypto Holdings
While regulatory clarity remains complex, high-net-worth individuals continue to accumulate digital assets aggressively. One notable example is Justin Sun, founder of TRON, whose known crypto holdings surged over 50% in one month, reaching more than $1.1 billion by mid-September.
According to Arkham Intelligence data:
- On August 19, Sun’s wallet held approximately $733 million in crypto
- By September 19, that figure had climbed past $1.1 billion
- His largest holding is Wrapped Staked Ethereum (wstETH), valued at around $315 million
This rapid appreciation underscores the extreme volatility and growth potential inherent in cryptocurrency markets. It also reflects growing confidence among key players—even in regions with restrictive policies.
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Wall Street’s Inevitable Embrace of Bitcoin ETFs
Anthony Scaramucci, founder of Skybridge Capital, remains bullish on Bitcoin despite ongoing macroeconomic headwinds. He believes the worst of the bear market may still lie ahead—but long-term prospects are overwhelmingly positive.
“You’ve survived the winter,” Scaramucci said. “The next 10 to 20 years are going to be extremely bullish.”
He draws parallels between today’s crypto adoption and the early days of the internet, predicting that younger generations will drive mainstream acceptance just as his generation did with online technologies.
A major catalyst? The approval of Bitcoin spot ETFs.
Scaramucci insists that once these products become widely available, every major Wall Street firm will offer them to clients. “When Wall Street adds something to its arsenal, it sells it to customers,” he noted. “And that’s when adoption goes exponential.”
He also reiterated his belief that Bitcoin is superior to gold as a long-term store of value due to its portability, divisibility, transparency, and fixed supply.
Bitcoin Technical Outlook: Is a Rebound Imminent?
From a technical standpoint, Bitcoin remains in a fragile balance between bulls and bears.
As of recent analysis:
- Price has held above the 20-day EMA ($26,523), but failed to spark strong upward momentum
- The flat 20-day moving average and neutral RSI indicate market equilibrium
- A break below $26,200 could trigger further downside toward $24,800 support
- Conversely, reclaiming $26,948 (50-day SMA) may signal renewed bullish control
On the 4-hour chart:
- BTC trades below key moving averages
- However, selling pressure has weakened at lower levels
- A successful push above $26,500 could lead to a test of $27,400–$28,143 resistance zones
Market watchers suggest that while near-term uncertainty persists, institutional interest and regulatory clarity—such as China’s evolving judicial stance—could provide foundational support for future rallies.
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Frequently Asked Questions (FAQ)
Q: Does China now allow cryptocurrency trading?
A: No. While courts recognize Bitcoin as having property attributes, China still bans financial institutions from handling crypto transactions and prohibits exchanges and mining operations.
Q: Can individuals legally own Bitcoin in China?
A: There is no explicit law banning personal ownership. Courts have acknowledged digital assets as property in dispute resolutions, suggesting de facto recognition of private holdings.
Q: What makes Bitcoin different from other virtual currencies like Q-coins?
A: Bitcoin operates on decentralized blockchain technology with limited supply (21 million), making it scarce and non-replicable. In contrast, virtual tokens like Q-coins are centralized, infinitely reproducible, and lack intrinsic value.
Q: Will a U.S. Bitcoin spot ETF impact global markets?
A: Yes. Approval would enable widespread institutional investment via traditional brokerage accounts, significantly increasing demand and liquidity across global markets.
Q: Is Bitcoin legally protected in court cases?
A: Increasingly yes—especially in civil disputes over ownership or theft. Chinese courts have ruled that unlawful access to someone’s crypto constitutes property infringement, not just data theft.
Q: How does judicial recognition affect investor confidence?
A: It enhances legitimacy and encourages long-term holding behavior. Legal clarity reduces perceived risk, attracting more sophisticated investors despite regulatory restrictions.
Final Thoughts
While China maintains a strict regulatory posture toward cryptocurrency infrastructure, judicial recognition of Bitcoin’s uniqueness, scarcity, and property value signals a maturing understanding of blockchain-based assets. Combined with surging holdings among influential figures and rising institutional anticipation around ETF approvals, the foundation for broader acceptance continues to strengthen—even in restrictive environments.
As technology evolves and legal frameworks adapt, digital assets like Bitcoin, Ethereum, and wstETH are increasingly seen not just as speculative instruments, but as viable components of modern wealth preservation strategies.