Hunan court ruled that repayment with virtual currency is invalid in a loan dispute case

The People's Court of Xiangyin County, Hunan Province recently heard a case involving repayment of loans with virtual currency. The court ruled that virtual currency does not have the same legal status and legal compensation as legal currency, and the borrower's use of virtual currency to repay debts is invalid. The case shows that the debtor Wang used virtual currency to repay a debt of 20,000 yuan through the "TR Foreign Currency Platform", which was later identified by the public security organs as suspected of virtual currency network pyramid selling. The court cited the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" issued by the central bank and ten other departments in September 2021, and determined that the repayment behavior violated the financial management order. The court emphasized that any legal person, non-legal person organization or natural person who invests in virtual currency and related derivatives in violation of public order and good morals shall be invalid in the relevant civil legal acts, and the losses caused thereby shall be borne by themselves. (China Court Network)