As crypto investors generally know, China has made all cryptocurrency transactions illegal and banned crypto mining activities. A recent court ruling reiterated the government’s stance to ban all possible Bitcoin mining activity.
On December 15, the Beijing Chaoyang District Court tried a contract dispute over late returns from Bitcoin mining and ruled that the service contract, according to a. Is “void” note From the court.
The plaintiff went to court after the defendant, a mining company commissioned by it, failed to pay her 278.1654976 bitcoins worth approximately $ 18 million on December 15.
This is the first time a Beijing court has voided Bitcoin mining contracts, the press release said. Following the verdict, the court ordered the competent authorities in Sichuan, an energy-rich province where mining was going on in the case, to “clean up” any remaining activity.
The court ruling, while unsurprising, could discourage foreign companies from doing business with Chinese crypto firms. Although China has made all crypto transactions, trading, and investing illegal, many crypto firms still keep technical and operational forces in the country while providing services to their overseas clients.
China began weighing crypto mining bans back in 2019 and began seriously stepping up enforcement in 2021. Virtual Currency reduction is “energy-intensive, causes high CO2 emissions and contributes little to the economy,” said a September note by the National Development and Reform Commission, China’s state planner, and such activities “should be eliminated”.
According to the court in Beijing, the signed contract is “void because it undermines social and public interests”. As such, the rights and interests involved should “not be protected by the law” and the parties involved “should face the consequences” of their actions.