Justin Sun Sees Crypto Optimism in China After Court Win

Justin Sun’s surprise legal triumph in China sends ripples through crypto world, suggesting Beijing may be softening its stance.

Justin Sun watching the sunset with his cool lucky cat.
Created by Kornelija Poderskytė from DailyCoin
  • China‘s strict anti-crypto policies limit domestic activity
  • There are persistent rumors of China reversing its anti-crypto policy.
  • Justin Sun claimed China‘s anti-crypto stance is an overblown narrative.

China’s cryptocurrency ban in 2021 sent shockwaves through the industry, causing a 50% drop in Bitcoin’s value and forcing miners to flee the country. Authorities justified the move as necessary to combat financial crimes and protect the financial system, marking a turning point in global crypto regulation.

Since then, speculation has persisted about China potentially reversing its hardline stance. Hong Kong’s increasingly crypto-friendly approach has fueled these rumors, despite mainland China’s policies remaining unchanged. However, Tron founder Justin Sun’s recent legal victory has sparked hope for a potential thaw in China’s attitude towards cryptocurrency.

Justin Sun Wins Defamation Lawsuit in Chinese Court

Sun won his defamation case in the People’s Court of China in June, potentially indicating a shift in the country’s anti-crypto policy. The lawsuit centered on Sun accusing the Chongqing Business Media Group of defamation due to the publication of articles portraying Sun as a fraudster evading authorities in both China and the U.S.

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Despite concerns about the fairness of Chinese courts and China’s anti-crypto stance, Sun won his case, challenging the prevailing narrative that cryptocurrency issues are disregarded in China or that its courts blindly enforce government policies.

Speaking to Frank Chaparro of The Block, Sun expressed that his legal triumph should not be viewed as surprising. He argued that China’s reputation as staunchly anti-crypto is exaggerated and does not reflect the stance of the country’s legal system.

Sun elaborated that the prevalent belief in China’s anti-crypto stance led many to assume his case against the Chongqing Business Media Group was doomed from the start. However, Sun argued that his legal victory suggested that Chinese authorities do not view the cryptocurrency industry unfavorably.

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The Tron founder compared China’s crypto policy to that of the U.S., stating “Of course, some regulators are very conservative about cryptocurrency or cryptocurrency policies, but overall the court, the government doesn’t have a discriminatory policy [to crypto] at all.”

Despite Sun’s optimistic view of China’s crypto stance, the country’s skepticism towards digital assets suggests otherwise.

China’s Anti-Crypto Stance

China’s skepticism towards digital assets dates back to 2013, when it first classified Bitcoin as a “virtual commodity” without legal tender status. This move set the stage for a series of increasingly restrictive policies that would unfold over the next eight years.

The 2021 ban on cryptocurrency activities in China marked the final blow by formalizing the illegality of a wide range of activities, including trading, derivatives, and token-based fundraising.

This also established a multi-agency approach to monitoring and suppressing crypto-related activities, signaling a coordinated effort to eradicate the industry’s presence in the country.

Nonetheless, Sun predicted that within the coming year, even jurisdictions currently seen as anti-crypto, such as China, will begin to adopt a more favorable stance towards digital assets, potentially serving as a bullish catalyst for the entire industry.

On the Flipside

  • Wang Yang, vice president of the Hong Kong University of Science and Technology, recently claimed that the exodus of miners from China has cost the government $4 billion in lost tax revenue.
  • Chinese authorities aim to curb capital flight to stabilize the economy and prevent further financial outflows.

Why This Matters

Sun’s legal victory suggests a possible shift in China’s crypto stance that would boost market sentiment and accelerate adoption if accompanied by policy changes.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Samuel Wan

Samuel Wan is a finance professional turned crypto journalist, known for his insightful reporting on market trends, regulatory changes, and technological developments within the digital asset industry. His ability to simplify complex concepts and report the facts has made him a trusted source in the crypto community. Beyond his writing, Samuel is an active mountain biker and gamer.