Courts in China Overrule Lawsuit Against Local Cryptcurrency Exchanges

Courts in Beijing have decided to overrule a lawsuit that was going against local Bitcoin exchanges. There was not much evidence to prove that these exchanges are conducting business illegally. The courts stated that investors need to be taking account for their own transactions. Recently it has been reported that an individual, Mr. Wang, has become frustrated as he has lost a large sum of money trading Bitcoin (RMB 400,000/$61,500). Huobi, a major exchange company in China, was one of Wang’s attempts to regain his losses. Wang referred to Karl Marx’s book, Das Kapital and has stated that Bitcoin should not be considered a commodity. He agreed with Marxs’ argument stating that a commodity needs to exist in order to be of value. He feels that his trades should not be valid and his loss needs to be refunded to him. However, courts ruled against his arguments, due to the fact that Wang did not have concrete evidence showing that these exchanges were illegally operating. Huobi will not be held liable and Wang is responsible for his loss. The judge made a statement saying that there are not any rules that prevent individuals from trading Bitcoin. He also warned investors that digital currency is not backed by the government and people can be scammed. Many Chinese exchanges have moved to different countries due to a ban from the Chinese government and closures on exchanges allowing them to operate in their own country. However, this has been changed and China has since removed the ban, instead placing regulations on the industry.

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