thecoinrise.com
Under a Bitcoin mining contract plea filed against a blockchain company, monetary compensation has been rejected by a district court in Beijing.
As reported by the South China Morning Post on Thursday, the Chaoyang District People’s Court ruled on Wednesday that a Bitcoin mining contract between the plaintiff and a blockchain firm was “invalid.” The blockchain firm was reportedly paid 10 million Yuan ($1.6million) by the plaintiff to deploy mining machines, but the plaintiff allegedly suffered losses on the investment.
The Beijing-based complainant claimed he only made an 18.5 BTC profit on his investment and sought an additional 217.17 BTC in damages. The court dismissed the request and ordered the National Development and Reform Commission’s Sichuan division to investigate any illicit mining in the province.
China’s contribution in Bitcoin mining goes to null
Last summer, China began cracking down on cryptocurrency mining, leading to the departure of some of the country’s largest Bitcoin mining firms. Following the mining crackdown, China’s share of the Bitcoin hash rate dropped from over 60% to nearly zero. Even after almost completely eliminating crypto mining, Beijing issued a broad policy crackdown on crypto trading and mining in September, restricting even small-scale Bitcoin mining operations at home and banning all foreign crypto exchanges.
Since then, the Chinese government’s anti-crypto laws have only gotten stricter. Despite the fact that Chinese traders have repeatedly found ways to circumvent cryptocurrency trading regulations, crypto mining in mainland China is nearly extinct.
The recent court case involving a Bitcoin mining contract exemplifies China’s stance on cryptocurrency. It sends a strong message to the general public that crypto-related cases will not be protected or recognized by the judicial system.
China’s CBDC is under trial phase and recently set an example on the importance of testing as the country reported its first money-laundering case involving digital Yuan.