China has declared allcryptocurrencies transactions illegal. A court decision reinforced the government's attitude to stifle any mining activity.
The service contract was voided by the court in Beijing on December 15 after a dispute over delayed returns from mining.
The mining company it contracted failed to pay it's dues, which is worth $18 million as of December 15.
This is the first time a Beijing court has declared a mining contract null. The court urged relevant authorities in the energy-rich province of Sichuan to purge any remaining mining activity that was mentioned in the case.
The court ruling could deter overseas companies from doing business with Chinese firms. Despite China deeming all transactions, trading and investment illegal, many firms still keep engineering and operational forces in the country.
China began seriously ramping up enforcement of mining bans in 2021. The National Development and Reform Commission, China's state planner, said in a September notice that virtual currency mining should be eliminated.
The Beijing court said that the signed contract was void because it undermined social and public interests. The parties involved should bear the consequences of their actions as the related rights and interests should not be protected by the law.
China says that all cryptocurrencies transactions are illegal.
