{"id":594049,"date":"2023-10-12T14:32:44","date_gmt":"2023-10-12T11:32:44","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-lending-invalidated-by-chinese-court-in-second-landmark-ruling\/"},"modified":"2023-10-12T14:32:44","modified_gmt":"2023-10-12T11:32:44","slug":"crypto-lending-invalidated-by-chinese-court-in-second-landmark-ruling","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-lending-invalidated-by-chinese-court-in-second-landmark-ruling\/","title":{"rendered":"# Crypto lending invalidated by Chinese court in second landmark ruling"},"content":{"rendered":"

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The plaintiff, Mr. Ming, will have no judicial relief to recoup his 80,000 Tether loan after its borrower defaulted. <\/p>\n

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A second Chinese court has ruled that crypto lending is an activity outside the protection of the country\u2019s legal system.<\/p>\n

According<\/a> to an Oct. 10 press release by the Nanchang People\u2019s Court, in April 2021, an individual known as Mr. Ming lent a total of 80,000 Tether (USDT) to an individual known as Mr. Gang for stablecoin trading. The loan was to be repaid within six months. However, Mr. Gang defaulted on the loan, leading Mr. Ming to sue his counterparty in court.\u00a0<\/p>\n

In its landmark decision this week, the Nanchang People\u2019s Court stated Mr. Ming was required to prove that Tether is a legally issued fiat currency to bring a necessary cause of action for judicial relief, citing a series<\/a> of legislation forming China\u2019s crypto ban. Since Mr. Ming could not do so, the court ruled that the lawsuit did not fall within the app<\/a>ropriate scope of civil litigation. Mr. Ming subsequently appealed the decision, which was also dismissed. The presiding judge wrote:<\/p>\n

\u201cThere 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 currencies and related derivatives that violate public order and good customs, the relevant civil legal actions will be invalid, and the resulting losses shall be borne by them.\u201c<\/p><\/blockquote>\n

Cryptocurrencies have been banned in China since late 2021 over environmental concerns and a lack of surveillance. In another ruling from August, the Changzhou Zhonglu People\u2019s Court invalidated a $10 million Bitcoin (BTC) lending agreement, ruling that the lender had no means of judicial relief due to the borrower\u2019s default, as crypto is a prohibited activity within the country.\u00a0<\/p>\n

Magazine: 6 Questions for JW Verret \u2014 the blockchain professor who\u2019s tracking the money<\/em><\/strong><\/p>\n