After two secessions held in Beijing, China is drafting legislation to protect cryptocurrency inheritances. A draft of the country’s Civil Code was adopted, which regulates legal relations between citizens, marriage issues, family relations, and extends inheritance rights to bitcoin and cryptocurrency.
Estimates believe that China accounts for approximately 60% of global bitcoin mining. According to the 2019 Global Digital Asset AML Research Report, $11.4 billion worth of bitcoins were withdrawn from China, a country in which crypto is not prohibited, but circulation of which is prohibited.
The Civil Code defines Internet assets and digital money as property.
“It’s hard to assess now, since, in the short term, China will focus more on developing the state digital currency, namely DCEP,” Liu Dongmin, head of the Centre for International Finance at the Institute of World Economics and Politics, Chinese Academy of Social Sciences, said. “But in the long run, greater liberalisation is possible regarding private digital currency regulation. The Civil Code is undoubtedly the most important step in advancing China’s digital economy and reaffirming the legal status of digital assets. I believe that in the future, China will gradually weaken the rules for digital currency use. In the end, if they are not liberalised, it will be contrary to the Civil Code”.