A second court in China has ruled that cryptocurrency lending is an activity not protected by the country’s legal system.
According to reports on October 10 Press release The Nanchang Municipal People’s Court found after trial that in April 2021, Ming lent a total of 80,000 Tether (USDT) to a certain Gang for stable currency transactions. The loan must be repaid within six months. However, Mr. Gang defaulted on the loan, and Mr. Ming sued the other party in the Nanchang People’s Court.
In a landmark judgment handed down this week, the Nanchang People’s Court said Ming must prove that Tether is a legally issued legal tender before he can bring the necessary cause of action for judicial relief, citing a raft of legislation governing China’s cryptocurrency ban. . Because Mr. Ming was unable to do so, the Nanchang Municipal People’s Court ruled that the lawsuit did not fall within the proper scope of civil litigation. Mr Ming subsequently appealed the decision, which was also dismissed. The presiding judge wrote:
“There are legal risks involved in participating in virtual currency investment and trading activities. If any legal person, unincorporated organization, or natural person invests in virtual currency and related derivatives that violates public order and good customs, the relevant civil legal proceedings will be invalid, and the resulting losses will be borne by them.”
China has banned cryptocurrencies since late 2021, citing environmental concerns and a lack of regulation. In another ruling in August, the Changzhou Zhonglu People’s Court invalidated a $10 million Bitcoin lending agreement, ruling that because cryptocurrencies are a prohibited activity in the country, the lender was unable to obtain judicial relief for the borrower’s default. .
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