Domestic legislation recognizes the status of Bitcoin and OKCoin believes it is beneficial to the development of Bitcoin

On June 27, the 21st meeting of the Standing Committee of the 12th National People's Congress was held in Beijing. The meeting reviewed for the first time the explanation of the "Draft General Principles of the Civil Law of the People's Republic of China" proposed by the Chairman's Meeting of the Standing Committee of the National People's Congress. The draft of the General Principles of the Civil Law was officially released, and online virtual property and data information will officially become rights, which also means that digital currencies represented by Bitcoin, virtual currencies represented by online game coins, and data information represented by big data will be officially recognized as objects of civil rights.

The commodity nature of Bitcoin in China was first established in the "Notice on Preventing Bitcoin Risks" issued by the Central Bank in 2013, which pointed out that Bitcoin is not issued by the monetary authorities, does not have monetary attributes such as legal compensation and compulsion, and is not a real currency. However, Bitcoin is a virtual commodity that citizens can buy and sell at their own risk. Previously, the "General Principles of Civil Law" stipulated: "Citizens' personal property includes citizens' legal income, houses, savings, daily necessities, cultural relics, books and materials, forests, livestock, and means of production and other legal property that citizens are allowed to own by law." Bitcoin, as a commodity legally held by citizens, should be included in "other legal property."

Duan Xinxing, Vice President of OKCoin, further clarified the legal status of Bitcoin: "Due to the virtual nature of digital currency, although it is defined as a "commodity" by the central bank, it is different from traditional property types and is difficult to be included in the category of "things" in the traditional sense, including "movable property" and "immovable property". Therefore, Chinese law has not clearly defined digital currency-type network virtual assets before, and it is difficult to have "laws to follow" for disputes and disputes involving such property. The revision of the General Principles of Civil Law will include it in the category of "objects of property rights" together with statutory rights, which will help protect such property rights and open up a direction for the establishment and formulation of specific rules in the future.

According to OKCoin's public trading data, Bitcoin has been on an upward trend since it went online on October 2, 2013, rising from a low of 672 yuan to a high of 7,995 yuan. From the data chart, we can see that December 4, 2013 was the second normal correction after Bitcoin's sharp rise, and the market wanted to save strength to impact upward again. On the second day (December 5, 2016), the central bank issued the "Notice on Preventing Bitcoin Risks", and Bitcoin fell in response, with a sharp drop in prices, from 6,731 yuan to 2,059 yuan, a drop of 69.4%, as high as 4,672 points. After that, Bitcoin was generally in a downward trend, and the price continued to hit new lows, until October 5, 2015, when it began to rise.

According to OKCoin's public trading data, the market rebounded after the Bitcoin price hit 5,100 points last week, with four consecutive large negative lines. After Brexit, a lot of safe-haven funds entered the Bitcoin investment field, driving the market rebound. After that, the price touched the pressure line of 4,470 and then fell sharply again, forming a large negative line, indicating that the good news of Brexit has been digested and the market sentiment has reached a low point. After the draft of the General Provisions of Civil Law was officially released on June 27, the Bitcoin price rebounded, reversing the decline of the day before, and the price once again went above the 30-day line and hit the pressure level of 4,470 again.

At present, China has a large number of Bitcoin players and is the country with the largest Bitcoin trading volume. In China, the biggest factor affecting the price of Bitcoin is undoubtedly the legal factor. Every time a relevant law is introduced, the price will fluctuate greatly. The draft of the General Provisions of Civil Law issued on June 27 clearly stipulates that Bitcoin is protected by law, providing legal protection for the development of the Bitcoin market and related matters of virtual property rights protection. In the long run, due to the clear legal status and bright market development prospects, it is conducive to the development of the Bitcoin industry.