China Passes Civil Code about Cryptocurrency Inheritance in China
The 13th National People's Congress in China has passed a historic and long-awaited civil code about ‘Cryptocurrency Inheritance’ in China.
The Chinese legislatures voted in the majority for passing “the Civil Code of the People's Republic of China” which includes real rights, personality rights, marriage and family, contracts, inheritance, and tort liabilities. This is China's long-awaited civil code which also expands includes top cryptocurrency such as Bitcoin. Several provincial courts have protected Bitcoin and Ethereum under the properties law in recent years.
The Civil Code of China states that, “When a natural person dies, the legacy is the personal legal property left by she / he.”
Last month, China’s intermediate people’s Court had considered Bitcoin as foreign virtual property and ordered to return the virtual property to the lawful owners.
In 2019 Hangzhou province court Bitcoin as a virtual property in a between a Crypto exchange and its customers seeking millions of damage.
While passing the law, Wang Chen, Vice Chairman of the Standing Committee of the National People’s Congress, addressed the session which states:
“The compilation of the civil code is an important component of the plans of the Communist Party of China (CPC) Central Committee with comrade Xi Jinping at the core for developing the rule of law.”
He further informed that the civil code will come into effect from 1 January 2021.
In recent months, China has gained momentum in testing its central bank digital currency (CBDC) and has been conducting pilot tests in various cities.Market experts are considering these activities as a preparatory setup for welcoming the digital Yuan, which will probably be the main feature of the Beijing Winter Olympics. However, considering the centralized nature of the Chinese Communist government, analysts believe that the digital Yuan will have a monopoly in the digital Chinese market and other digital currencies will be outcast.
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CBW - External Analyst