- This is the rule adopted by the Supreme Court of the PRC
- But payments can only be made by mutual consent
- Is this Russian help to circumvent sanctions?
The Chinese cryptocurrency scene has surprised again with an unexpected turn of events. And the hero was the Supreme Court of this country.
They recently released guidelines for resolving disputes over digital assets. It says that the debtor has the right to repay debts in cryptocurrencies, but provided that both parties agree to it.
As you know, China introduced a ban on digital currencies 2 years ago.
Now the Supreme Court has actually recognized that cryptocurrencies have value and certain properties. However, there are a few caveats in the decision.
- As we said, both parties must agree to the settlement in cryptocurrencies.
- It must be a small amount (but figures are not specified).
- The transfer can only be used to pay debts arising from a mutual business relationship.
- Companies have no grounds to suspect the illegality of the payment.
The Supreme Court has clarified cases where cryptocurrency payments cannot be made due to international restrictions.
If the receiving party cannot fulfill its part of the contract because of sanctions, the court will determine compensation from other assets or property accepted by the recipient at the time of signing.
Some critics suspect that the new rule will allow China to accept payments from rf in cryptocurrencies to conceal trade relations. Whether that will be the case, time will tell.