Caixin
Feb 18, 2022 09:09 PM
FINANCE

Chinese Court’s Crypto Loan Ruling Leaves Private Lender Out of Pocket

China has no law specifically banning private cryptocurrencies, but financial regulators have released regulations and notices over the past few years that make it clear these cryptocurrencies including ETH and Bitcoin cannot be traded as legal tender. Photo: VCG
China has no law specifically banning private cryptocurrencies, but financial regulators have released regulations and notices over the past few years that make it clear these cryptocurrencies including ETH and Bitcoin cannot be traded as legal tender. Photo: VCG

A Chinese individual who lent 10 million yuan ($1.58 million) worth of Ethereum (ETH) faces losing it all after a court in the eastern province of Fujian ruled that the agreement they signed with the borrower has no legal force and that the cryptocurrency itself is not protected by law.

The transaction disrupted economic and financial order, violated public order and the customs of society, and harmed public interest, the Siming district court in Xiamen city wrote in its judgement.

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