Combatting bitcoin related disputes; a challenge to Chinese judiciary

A lot of unrest in the recent days has been encountered by the Chinese courts regarding bitcoin disputes. The major source of these disputes is the decline of crypto rates in China. The lack of monitoring and central restrictions of bitcoin related transactions have made the task of solving these dispute even more difficult. Now the question arises that if bitcoin trading is banned in the People’s Republic of China then how can the issue of resolving these conflicts come in the first place?

Pending cases

The Chinese courts have the fact that there are 274 pending cases related to bitcoin. Out of them, 126 are cases related to bitcoin crimes as reported by China money network.

The courts are unclear on how to solve the problem

The Chinese courts are totally in a flux as how to deal with these pending cases because the ban that Chinese government has enforced on bitcoin transactions were not in official paper.

The Unofficial ban

Last year the Chinese government had imposed restrictions on ICOs. With the ban on the bitcoin related exchanges, the government also expanded their prohibitions on any foreign podiums that attempt to further bitcoin transactions to the Chinese citizens.

The ban further enforced the exchanges in the market place such as OKcoin, Binance and Huobi to curb their trading in China and instead look for more preferable authority. As a result of this ban, the companies that were run by China founded upon new governing authority and spread their offices in other countries such as USA, Japan, Singapore, Korea and Hong Kong.

Now, the ICO ban and its enforcement is different from the ban on bitcoin because of the element of legal regulations. The ICO ban has been officially announced in paper and the managerial actions have been taken through the state monitoring for instance the People Bank of China is highly active in this situation. So with no ban imposed on bitcoin related exchanges, this becomes a barrier in any legal actions taken by the Chinese Courts. So in cases where bitcoin related crimes are dominant, the court cannot take any measure because the ban on bitcoin trading is not made official by the government yet. News Wire & Equity Research: +31 084-0032-842

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