Exploring Blockchain: Legal Insights and Case Studies

Blockchain Case Compilation and Analysis

In today's rapidly evolving digital landscape, blockchain technology remains a focal point of innovation. Emerging from Satoshi Nakamoto's 2008 whitepaper, Bitcoin's success as a decentralized application has captured global investment interest. China's leadership, including President Xi Jinping's emphasis on blockchain as a "core technology breakthrough," underscores its strategic importance.

Judicial Landscape (2015-2020)

• 541 blockchain-related cases were adjudicated in Chinese courts by March 2020

• Case distribution:

  • Criminal (54 cases): Primarily financial crimes (21 MLM cases, 12 illegal fundraising)
  • Civil (475 cases): Dominated by contract disputes (60%) involving virtual currency investments
  • Administrative (12 cases): All related to trademark disputes with the Patent Office

Key characteristics:

1. 80% of civil cases stemmed from cryptocurrency investment disputes
2. Group litigation was prevalent (e.g., 119 plaintiffs in one Shandong case)
3. Blockchain enterprises faced conventional commercial disputes (development contracts, labor issues)

Bitcoin's Legal Quandaries

Case 1: Ether Refund Dispute (2018)

• Court: Shanghai Hongkou District People's Court
• Ruling: ETH recognized as "general legal property" subject to unjust enrichment claims
• Precedent: Virtual currencies receive equal protection despite circulation restrictions

Case 2: Bitcoin Cash Fork (2018)

• Court: Beijing Haidian People's Court → Beijing No.1 Intermediate Court

• Key Findings:

  • Bitcoin derivatives (BCH) constitute "protectable civil interests"
  • Platform announcements create binding contractual obligations
  • Price volatility excludes damage claims due to unforeseeability
• Landmark: First judicial recognition of cryptocurrency fork rights

Legal Analysis: Chinese courts increasingly acknowledge cryptocurrencies' property attributes while maintaining transactional restrictions. Contractual safeguards are essential for rights enforcement.

Blockchain Evidence Authentication

Pioneering Case: Copyright Infringement (2018)

• Platform: Hangzhou Internet Court

• Technology:

  • Automated webpage capture via Puppeteer/CURL
  • Dual-chain storage (FACTOM + Bitcoin blockchain)

• Evidentiary Standards:

  1. Neutral third-party platform verification
  2. Technical process reliability
  3. Chain integrity confirmation through hash validation

Authentication Pitfalls (2019)

• Rejection Grounds:

  • Incomplete network environment checks
  • Missing tracert commands for path verification
  • Failure to comply with Operation Guidelines for timestamp collection

Best Practices: Strict adherence to technical protocols ensures blockchain evidence meets "preponderance of evidence" standards under Supreme People's Court rules.

Regulatory Framework: Key Provisions

Blockchain Information Service Management (2019)

• Core Requirements:

  • Article 6: Technical compliance with national standards
  • Article 11: Mandatory ICP filing for service providers
  • Article 16: Real-name user registration systems

Compliance Checklist:

1. Develop publicly accessible platform conventions
2. Implement content moderation protocols
3. Establish emergency response mechanisms
4. Maintain cybersecurity certifications (e.g., MLPS Level 3)

Trademark Precedent (2019)

• Dispute: "UTrust Blockchain" trademark rejection

• Courts' Divergence:

  • 1st Instance: Permitted for non-blockchain services
  • 2nd Instance: Overturned due to potential public deception
• Takeaway: Branding must accurately reflect technological capabilities

FAQ: Blockchain Legal Concerns

Q: Are smart contracts legally binding in China?

A: While not explicitly regulated, courts may enforce them as electronic contracts if they meet Electronic Signature Law requirements.

Q: Can blockchain evidence stand alone in court?

A: No. Judges evaluate comprehensive factors including:

• Data generation environment
• Storage methodology
• Correlation with other evidence

Q: What's the penalty for unregistered blockchain services?

A: Non-compliant providers face:

• Corrective orders
• Fines up to ¥30,000
• Service suspension for severe violations

👉 Explore compliant blockchain solutions

👉 Global cryptocurrency regulations comparison

This analysis demonstrates blockchain's evolving legal framework, where technological innovation intersects with judicial prudence. Stakeholders must navigate both technical potentials and regulatory constraints for sustainable development.