Hi guys, this is Deron, your Chinese lawyer friend. In today’s episode, i would like to talk about the topic can you use stablecoin to do business in Chinese mainland?
Have you noticed that stablecoin is on fire these days? it seems like that all of a sudden, everybody is talking about buying crypto assets publicly, Nasdaq companies are buying bitcoin or ethereum and their stock prices go rocket high, tech companies are applying for stablecoin license, they see it as the future of next generation banking system.
Why is all this happening? one of the reasons is because that the law has changed, starting from America, then Hongkong, they have all passed pro stablecoin bills and crypto assets are seen as a good investment that needs to regulated and guided rather than banned.
If you have got some stablecoin like usdt/usdc, you may already find that comparing to money in the bank, it’s so convenient and so fast, especially when it comes to international money transfer. It’s working in a way nothing like the current banking swift system, there is no intermediary, just peer to peer.
Okay, now imagin You come to visit china or you are a businessman and plan to do some purchase from china. can you pay by stablecoin?
Recently a guy tried to use cryptocurrency to buy a car in shanghai, but the car dealer didn’t honor the contract and refused to refund the guy. the guy is so angry and sued the car dealer in court. what do you guys think the chinese court would rule on this?
Well, unlike hongkong, who is pro cryptocurrency, stablecoin is not officially recognized as currency in chinese mainland in any way. the guy loses his case, being told that the purchase agreement was invalid and had to bear the loss by himself, which means no car, no cryptocurrency refund.
On the other hand, if you use fiat currency to buy cryptocurrency in Chinese mainland, and the seller don’t give you the cryptos, you have a right to claim it back by court.
And for criminal cases, if your cryptocurrency gets stolen, robbed or scammed, that’s another story, you have a right to go to the police and ask them to assist you to get it back.
So that’s all for today. im your chinese lawyer friend deron, if you have any questions regarding crypto compliance, or visiting working or doing business in china, you are welcome to contact me. thank you.#stablecoin #usdt #usdc #cryptos #chinatravel #chineselawyer