China Cracks Down on Crypto Disputes with New Adjudication Rules
China's Supreme People's Court is taking steps to formalize its approach to cryptocurrency-related disputes. The court announced plans to develop new adjudication rules for cases involving virtual currencies and cross-border finance, with judicial authorities conducting in-depth research into the matter.
The move comes as China continues to prohibit trading in cryptocurrencies on the mainland. Despite this ban, several Chinese local courts have previously ruled that cryptocurrencies like Bitcoin (BTC) qualify as virtual property in civil disputes over ownership rights.
Liu Guixiang, a supreme judge and member of the court's judicial committee, stated at a press conference in Beijing that authorities will quickly issue judicial interpretations covering civil compensation in cases of insider trading and market manipulation. This signals that China's judiciary is taking concrete steps to address growing legal disputes related to cryptocurrency.
The announcement builds on a February joint notice issued by China's central authorities that broadened oversight of crypto-related financial activity, reaffirming the mainland's ban on crypto transactions and extending regulatory restrictions to areas including real-world asset tokenization and offshore yuan-linked stablecoins.