Proposed law in China would extend consumer protections to Bitcoin, viritual goods

A new law proposed in China would extend consumer protections usually associated with physical assets to virtual properties, including Bitcoin for the first time.

The draft law, a proposed new Civil Code General Provision, is said to have been created to keep up with a changing global economic landscape and would treat Bitcoin and other cryptocurrencies, online gaming tokens and general data-based information almost on par with physical and financial assets, thereby bringing them under the purview of Civil rights that are applicable to property in general, NewsBTC reported.

To date digital currencies have no legal status in China, and are often exploited by scammers, such is in the case of the MMM Bitcoin scam which is rampant in the country; if the proposed legal changes were adopted owners of Bitcoin, other cryptocurrencies, and virtual properties would be eligible for legal protection from fraud and theft, including cases of Bitcoin theft being treated in a similar way to personal stolen data.

The proposed changes to the law would update a Chinese constitutional amendment in 2004 that introduced Civil laws governing individual rights to personal property, including lawful income, housing, savings, household items, books, reference materials, trees, and livestock.

Great news

China has been a mixed bag when it comes to Bitcoin; while Bitcoin remains popular in the country by volume of trade, authorities haven’t always been so welcoming towards it, having at various times attempted to crack down on, or control the currency, including withdrawing access to banking services with the Bank of China in 2014 which we headlined at the time as “is this the end of Bitcoin in China?,”and prior to that rumors that the Government would ban all third parties from dealing with Bitcoin exchanges, in effect crippling Bitcoin in the Middle Kingdom.

What a difference a few years makes and it’s great news that Chinese regulators have not only recognized the growing global importance of Bitcoin trade but are willing to extend consumer protection laws to the sector as well.

If you’re trading Bitcoin and looking for market signals, if this law passes there’s a good chance that demand for Bitcoin in China will rise, subsequently driving up the price.

Image credit: Pixabay/Public Domain
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Duncan Riley

Duncan Riley

Duncan Riley is a senior writer at SiliconANGLE covering Startups, Bitcoin, and the Internet of Things.

Duncan is a co-founder of VC funded media company B5Media and founder of news site The Inquisitr, and was a senior writer at TechCrunch in its earlier days.

Tips? Press releases? Intersting startup? email: duncan@nichenet.com.au or contact Duncan on Twitter @duncanriley

Duncan Riley

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