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Jiangsu High Court: Overseas virtual currency investments are not protected by Chinese law

ChainCatcher news, according to the Jiangsu High Court's official WeChat account, the Jiangsu High Court has released typical cases involving foreign-related commercial trials, stating that overseas virtual currency investments are not protected by Chinese law. In the relevant case, Singaporean citizen Pan XX and Chinese citizen Tian XX signed a cooperation agreement with a third party to jointly operate the "MFA Blockchain" project. Pan XX transferred 15.74 million yuan to Tian XX for the purchase of MFA virtual currency, but later the virtual account involved in the case was locked, resulting in the total loss of the principal. Pan XX filed a lawsuit in court.The Jiangsu High Court, in its second instance, held that Pan XX is a Singaporean citizen, and the case has foreign-related factors. According to China's law application rules, matters involving China's financial security and social public interests should directly apply the mandatory provisions of Chinese laws and regulations, which prohibit virtual currency investments. In this case, the parties signed a contract to speculate on overseas virtual currencies, violating the mandatory provisions of China's financial regulatory field. Therefore, the investment losses claimed by the parties are not protected by law, and the resulting losses shall be borne by the parties themselves.

Tiger Research: In 2024, the fund transfer of Korean crypto assets to overseas exchanges and DeFi platforms increased by 2.3 times year-on-year

ChainCatcher news, the latest report released by Tiger Research points out that despite South Korea's leading global position in cryptocurrency trading volume, the development of the country's Web3 industry is hindered by unclear regulations and a lack of specific guidance, resulting in accelerated outflow of capital, talent, and enterprises. The report mentions that in 2024, the transfer of South Korean crypto assets to overseas exchanges and DeFi platforms is expected to increase by 2.3 times year-on-year, primarily influenced by service interruptions at local exchanges and the attraction of external investment opportunities. Additionally, South Korean Web3 companies such as Nexpace, Klaytn, and Wemix have relocated their headquarters to regulatory-friendly countries like the UAE.The report also highlights that the outflow of talent has exacerbated the decline in the technological competitiveness of South Korea's Web3 ecosystem, while countries like the United States and the UAE have attracted high-end technical talent through clear policies. If South Korea wants to maintain its competitiveness in the global Web3 industry transformation by 2025, it urgently needs to promote regulatory reforms, allow corporate accounts to engage in crypto trading, and formulate policies related to stablecoins and DeFi to build a sustainable innovation ecosystem.
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