The Chinese Supreme Court of Jiangsu issued a hearing in the case of foreign commercial trials, and excludes that the investment of encryption abroad is not protected under Chinese law. In this particular case, Singapore’s investor, Ban, investigated his legal battle against a Chinese partner, Tian, due to an investment in virtual currency.
China HC Referee in foreign investment conflict for encryption
Ban, who was looking for high -yielding opportunities, partnership with Tian in 2019 to invest in the Blockchain project called “MFA Blockchain”. The project, which was launched with a third party partner, aims to benefit from the encryption trade, as Tian deals with technical processes and supervising financial contributions.
Previously, the opportunity to invest is promising, and Pan moved 15.74 million yuan to buy MFA Crypto. However, over time, he became concerned that his expected revenues failed to achieve them. After the repeated requests to return his money, Tian returned 10.6 million yuan, but by September 2020, the investment received a severe blow when the trading platform, Mexc, removed the MFA/USDT trading, and locking PAN.
According to the official statement issued by the Jiangsu Supreme Court, it was taken as a legal lawsuit, and in an effort to recover its remaining investments. However, the Western People’s Court in Yanging and the Jiangsu Supreme Court has ruled against it, on the pretext that the project involves virtual currency speculation, which violated China’s laws on financial security and public order. The courts have found that the cooperation agreement was not valid under Chinese law, which prohibits the circulation of cryptocurrencies and relevant activities.
The judge spent “the notice about more prevention and risks of speculation of virtual currency trading” jointly issued by the Chinese People’s Bank, the Supreme People’s Court and other illegal financial activities, which are strictly banned and prohibited in accordance with the law; Virtual currency exchanges abroad that provide services to my population via the Internet are illegal financial activities. “
Thus, the courts ruled that since the investment violated the compulsory legal rulings of China, Ban and Timyan will have to bear the losses themselves.
Also read: China and Thailand are jointly taken 2.5 million dollars in the process of trafficking in the coding
