According to Cointelegraph, another Chinese court has mentioned that crypto lending is an activity outside the protection of the country’s legal system.
With insights from a press release published on October 10, 2023, by the Nanchang People’s Court, in April 2021, an individual known as Ming lent a total of 80,000 Tether (USDT $1.00) to an individual known as Gang for stablecoin trading. The loan is expected to have been repaid within six months. However, Gang defaulted on the loan, leading Ming to sue his counterparty in court, Cointelegraph added.
“There are legal risks involved in participating in virtual currency investment and trading activities. If any legal person, unincorporated organisation, or natural person invests in virtual currencies and related derivatives that violate public order and good customs, the relevant civil legal actions will be invalid, and they shall bear the resulting losses,” Cointelegraph concluded.
(With insights from Cointelegraph)
