Share this article
Crypto Trading Isn't Protected by Law, Shandong Province High Court Says
The ruling contradicts that of a court in Shanghai last week.
Updated Sep 14, 2021, 1:43 p.m. Published Aug 23, 2021, 10:44 a.m.
Investing in crypto is not protected by Chinese law, the high court of Shandong province said in a ruling yesterday on a contract dispute case that dates back to 2017. The ruling contradicts one from a Shanghai court last week.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
- The case could set a legal precedent for crypto trading in the country, an activity that is already under intense pressure.
- Other courts in China have taken a different stance, ruling that digital assets are protected as virtual property or commodities.
- A court in more financially liberalized Shanghai said last week that crypto is protected as virtual property, and China's Supreme Court last year called for increased protections for virtual currencies.
- In the Shandong case, the plaintiff, identified as Ma, entrusted the three defendants with 70,000 yuan (US$10,500 at the time) to invest in tokens in 2017. Soon after, Chinese authorities banned crypto trading using the yuan, and Ma's money was locked in the trading account.
- The Shandong high court said that notices from the People's Bank of China, as well as the securities, banking, cyberspace and other regulators had clearly said at the time that investing in crypto tokens is illegal. Under China's civil law, the plaintiff was breaching the law and thus couldn't get his money back from the defendants.
- Echoing lower court rulings, the Shandong court said that crypto is not a legal currency issued by an authorized monetary authority, so it doesn't have the legal status of other currencies.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Arthur Hayes' Maelstrom enters 2026 at 'almost maximum risk' betting on altcoins
The fund is betting on a liquidity wave driven by U.S. deficit spending and potential money printing by the Federal Reserve, which Hayes expects to support crypto prices.
What to know:
- Arthur Hayes' Maelstrom fund has taken an "almost maximum risk" stance in 2026, focusing on risk assets like bitcoin and emerging DeFi tokens, with minimal stablecoin exposure.
- The fund is betting on a liquidity wave driven by U,S. deficit spending and potential money printing by the Federal Reserve, which Hayes expects to support crypto prices.
- Maelstrom's 2025 performance was profitable but uneven, and Hayes is now leaning into "credible" narratives supported by the broader liquidity environment.
Top Stories
