A judge in Shanghai's Songjiang District has declared that cryptocurrency is a commodity possessing property attributes, clarifying its legal status in a recent commentary on a 2017 business dispute. The case involved an agricultural company that sued an investment firm for failing to produce a cryptocurrency token as agreed. The court ruled that both parties were at fault due to illegal activities outlined in their agreement, ordering the return of part of the funds paid. Judge Sun Jie emphasized that while individuals can legally hold virtual currencies, commercial entities cannot engage in crypto investments or issue tokens. She warned about the risks associated with cryptocurrency speculation, linking it to potential illegal activities like money laundering and fraud. This commentary highlights the ongoing complexity of cryptocurrency's legal context in China, where strict measures have previously been implemented against virtual currency activities.

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