Litecoin Gains Extra Footing in China as Beijing Court Finds It Protected by Property Law
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Litecoin may fall under China’s property law, according to China’s highest court, the Beijing No. 1 Court. A Chinese court has ruled that residents can trade cryptocurrencies but not use them as a cash alternative in a lawsuit over Litecoin.
– Litecoin (@litecoin) September 15, 2022
The court issued the ruling as a result of an appeal on the Litecoin chargeback issue. In this case, the appellant Ding Hao refused to comply with the decision of the preliminary hearing ordering him to repay a large amount of Litecoin borrowed from the plaintiff Zhai Wenjie.
The complainant argued that Chinese law does not provide legal protection for cryptocurrency trading. In the first trial, Ding was ordered to repay Zhai 33,000 LTC of the original loan amount.
Zhai refused, arguing that since cryptocurrencies are essentially virtual assets and their Litecoin transactions were peer-to-peer loans that did not involve investment or financing, they should be protected by property law.
The court dismissed the appeal and upheld the original decision requiring Ding to return 33,000 Litecoin to Zhai under the Information and Virtual Property Protection Act. However, crypto-assets still have no legal status in China due to a previous ban.
Litecoin price action
On September 13, the price of Litecoin fell after reaching a high of $67.48. The recent market selloff has pushed the LTC price back below the $55 threshold. A retest of support near $52 could happen if there are more drops.
Litecoin could see a rally if the cryptocurrency market tries to regain some ground after the recent selloff, which could lead to a rally as high as $62.75. The $67.48 level has some bulls fearing another bull trap, so they may pause or hesitate to push higher. For now, a break above the $60 mark could be expected if there are some financial data and several percentage gains in the stock in the short term.