Tag Archives: China

Chinese Court Says Cryptocurrency Is Not Protected By Law

The Supreme Court of the northern Shandong province in China has ruled that “cryptocurrency is not protected by law.”

What Happened: While delivering a verdict in a case that involved a potential fraud related to the purchase of crypto, the Supreme Court said in a statement that “investing or trading cryptocurrency is not protected by law.” 

This could become another significant blow to China’s crypto industry after the crackdowns on crypto mining across the country.

As per the case, a Chinese plaintiff invested some $10,800 to buy tokens endorsed by three of his acquaintances in 2017.

However, their accounts were allegedly closed after the People’s Bank of China banned payment institutions supporting cryptocurrency transactions in 2018.

A court in Jinan ruled in January 2021 that the plaintiff’s fraud allegation was not tenable because the assets did not have any legal status.

According to the verdict, Jinan city’s intermediate court upheld the ruling when the plaintiff appealed in March. 

While reviewing the case, the Supreme Court of Shandong said cryptocurrency isn’t protected by law. 

According to the report, multiple cases are running in China concerning digital currencies.  

Why It Matters: Centralized trading and financial payments related to digital currencies have been illegal in China since 2013.

In May, the State Council’s Financial Stability and Development Committee of China officially announced their crackdown on crypto mining. This has led to reports of miners relocating overseas.

In July, the Agricultural Bank of China, one of the country’s biggest commercial banks, announced a crackdown on crypto transactions and is currently seeking to block accounts connected with bitcoin- and crypto-related activity.

Read next: Xiaomi Wants Regulatory Clarity Before Venturing Into Crypto In India

How An Institution Is Preparing For The Big Alibaba Rebound Play

Alibaba Group Holding Ltd -ADR (NYSE:BABA) has been slaughtered since October 2020 when it reached an all-time high of $319.32. The sharp decline has been partly due to poor U.S./China relations as well and Chinese regulators cracking down on the e-commerce giant and its CEO Jack Ma.

Since July 22 the decline in the stock has accelerated and although there has been some bounce plays for the bulls, the stock has become risky due to new out of China, when the U.S. markets are closed, causing Alibaba to gap down on four separate occasions. Gaps fill 90% of the time, however, so it is very likely Alibaba will trade back up to fill its highest gap near the $212 level in the future.

On Friday Alibaba slammed into a support level at the $155.50 level and bounced up slightly from it. The support level was created back in 2019 and could mark the pivot point for Alibaba’s rebound.

After hours, just before trading closed for the weekend an institution(s) purchased a whopping $611.71 million worth of common shares of Alibaba. It is likely the trader chose to purchase common shares as opposed to options to avoid time decay if Alibaba trades sideways or lower before rebounding back up to fil the gaps.

See Also: Is Alibaba Stock About To Rebound?

Why It’s Important: When a block trade occurs it indicates a hedge fund or institution has taken a position in common shares. A block trade always involves large sizing and is typically handled by a blockhouse privately and outside of the open market. Because block trades don’t happen on the open market the large size of the trades doesn’t create volatility in the stock being traded.

These types of purchase orders are made by institutions purchasing a large number of a security and retail investors can find watching for block trades useful because it indicates “smart money” has entered into a position.

The BABA Technologies Trades: Below is a look at the notable alerts, courtesy of Benzinga Pro:

At 6:24 p.m., a trader executed a block trade above ask of 1.6 million Alibaba shares at $160.98 per piece. The trade represented a $257.56 million bullish bet.

At 6:28 p.m., a trader executed a block trade above ask of 2.2 million Alibaba shares at $160.98 per piece. The trade represented a $354.15 million bullish bet.

BABA Price Action: Alibaba closed Friday’s session down 1.61% at $157.96.