A local court in China has rejected a plea for monetary compensation from the defendant of an application filed by a mining company she worked with, stating that Bitcoin mining is not legal.
The “bitcoin cloud mining” is a service that allows users to mine Bitcoins without having to buy expensive hardware. The Beijing court rejected monetary compensation in Bitcoin mining contract plea.
In a Bitcoin (BTC) mining contract case against a blockchain corporation, a district court in Beijing has refused monetary compensation.
The plaintiff’s Bitcoin mining contract with the blockchain business was declared “void” by the Chaoyang District People’s Court on Wednesday, according to the South China Morning Post. The plaintiff in the lawsuit apparently paid the blockchain business 10 million yuan ($1.6 million) for the deployment of mining equipment, but lost money on his investment.
The complainant, who is located in Beijng, said he only received 18.5 Bitcoin on his investment and requested an extra 217.17 BTC in damages. The court dismissed the petition and ordered the National Development and Reform Commission’s Sichuan division to investigate any illicit mining in the province.
Last summer, China began cracking down on crypto mining, forcing some of the world’s largest Bitcoin mining businesses to leave the country. Following the mining restriction, China’s Bitcoin hash rate share dropped from over 60% to almost zero. Even after almost eliminating crypto mining, Beijing began a strong regulatory push against crypto trading and mining in September, banning all overseas crypto exchanges and restricting even small-scale businesses at home.
In July 2021, China will have a part of the bitcoin mining market. CCAF is the source of this information.
The Chinese government’s anti-crypto measures have only become stronger over time. Despite the fact that Chinese traders have repeatedly discovered methods to circumvent crypto trading regulations, crypto mining is almost dead in mainland China.
The most recent court case involving a Bitcoin mining contract exemplifies China’s stance on cryptocurrency. It sends a clear message to the public that crypto-related matters will not be protected or recognized by the legal system.
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