- The Chaoyang district people’s court on Dec 15 held the deemed contract invalid as a consequence of the blanket ban
- The plaintiff has reportedly demanded 217.7 BTC compensation for their investments made into a blockchain firm
- The plaintiff had invested 10 million Yuan ($1.6 Million) for the deployment of mining machinery on which they incurred losses.
The far-fetched implications of China’s blanket ban on cryptocurrencies have resulted in some harsh consequences for it’s supporters, Investors & stakeholders. Apart from the mass exodus of miners to countries like Kazakhstan, US & Russia, many investors too lost their capital invested into the mining companies in the country.
Recently, a district court in Beijing has squashed the case of a plaintiff seeking monetary compensation for their investments made into the blockchain firm in accordance with a bitcoin mining contract in place with the company.
The Chaoyang District People’s court has reportedly deemed the submitted contract with the blockchain firm held invalid on Dec 15 due to the blanket ban imposed by the CCP. The plaintiff had reportedly invested 10 million Yuan ($1.6 Million) into the blockchain firm to deploy mining machinery on which he incurred losses.
The plaintiff claimed that he earned only 18.5 BTCs while demanding an additional of 217.17 BTCs insight of his losses; the court squashed the plea & directed the Sichuan branch of the National Development & Reform Commission (NDRC) to be more vigilant of the mining activities if operating in the province.
China’s bitcoin hashrate plunged from the heavens sky of over 60% to 0% in a miniscule time frame, disrupting & eradicating the mining industry almost completely. Recently too, Beijing declared an assertive policy drive against trading & mining, making even the smallest business or exchange go haywire in the country.
The policies have only gotten more stringent & imposed more rigorously driving the mining of cryptocurrencies to their extinction in mainland china. However, the CCP government stands inclined towards making its own blockchain-based digital Yuan, to which trials have commenced as a part of the Central Bank Digital Currencies (CBDC) project.
Accordingly, many analysts & experts in & around the domain have also expressed their views on similar lines, where the cryptomarkets could be driven to extinction as more central banks launch their own digital currencies.
The latest case ruling regarding bitcoin mining contracts symbolizes China’s stance on cryptocurrencies where even the judiciary won’t be protecting the stakeholders or investors in context to past transactions.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.