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China Declares All Cryptocurrency Based Activities ‘Null & Void’

The court further ordered that all such activities be ceased immediately and will be considered illegal henceforth.

China Bans Crypto

The Chinese government had already declared all cryptocurrency-based transactions and mining operations as illegal within the country. However, many firms still continued to perform these operations while having overseas contracts. Recently, one such crypto mining contract dispute was presented before a Beijing court, and the court considered the contract as null & void.

The claim was presented to the Chaoyang District court by a Chinese company that had not received payments for mining cryptocurrency worth $18 million! As per the decision of the court, the Sichuan-based mining company can not claim any of the valuations as their contract will not be considered legitimate by the Chinese government.

That is not all. The court further ordered that all such activities be ceased immediately, and any such cryptocurrency mining operation be considered illegal henceforth. The court stated that cryptocurrency mining goes against social and public interest as it adds very little value to the Chinese economy and also emits heavy levels of carbon emissions. Sichuan province is an energy heavy province and has many cryptocurrency mining companies.

Earlier in 2019, the Chinese government had stated that they will be against all cryptocurrency-based transactions and operations. This is the first time a court order officially states the same. It can be expected that the government will be coming down heavily on all crypto users and miners in China in the coming times.

There is now absolutely no chance of the mining company in question to recover their losses. Rather, they might have government action taken against them. However, no such ruling has yet been given. They will of course not be able to continue their operations anymore within the boundaries of China.

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