A report using data from the China Judgment Document Network (CJDN). Says that as many as 872 lawsuits related to cryptocurrencies were filed in the country last year. Approximately 20% more than in 2019.
The province of Guangdong had the most with 106. Zhejiang was right behind with 103, and Sichaun had the third most with 54. Furthermore, the CJDN data shows that 409 of these cases were criminal and 457 were civil cases.
When discussing the reasoning for the increase in lawsuits Liu Yang, a lawyer with Beijing Deheng Law Firm, boiled it down to three issues.
3 Issues Leading To Increase In Lawsuits Related to Cryptocurrencies
First, Yang believes Bitcoin’s bull run has led to increased awareness of BTC. Secondly he believes Guangdong and Zhejiang, the two areas with the most suits, have “the fastest development speed and the most advanced development concepts in the country”. And lastly Yang believes the rise has to do with how the judicial system is handling these cases.
In regards to his first point, Yang notes that due to the ongoing bull market Bitcoin has enjoyed, “more and more ordinary people are looking forward to learning about bitcoin and starting to invest in bitcoin”. As such “more people invest in bitcoin, and there are more conflicts and disputes.”
As far as Guangdong and Zhejiang goes. Yang points out that due to their advanced development concepts, those regions have a higher degree of acceptance of virtual digital currency than other areas.
When it comes to the judicial system, Yang believes that due to them paying more attention to currency-related case. They now have a deeper understanding of virtual digital currencies. Making it easier to “accept and file currency-related cases, and the number of cases naturally increases up.”
But despite all of these things, Yang still believes there are a number of challenges to be faced when filing crypto lawsuits. Once those are figured out, the number of cases will again rise.