China Supreme Court Drafts Judicial Guidelines for Digital Currency and AI Cases

As part of China's efforts to regulate its digital economy, the country's Supreme Court has announced plans to draft new judicial guidelines for digital currency and AI-related cases. The move is aimed at ensuring legal clarity and addressing the increasing complexity of disputes related to emerging technologies.

The court's Judicial Committee member, Liu Guixiang, revealed that the Supreme People's Court (SPC) will prioritize civil compensation rules for insider trading and market manipulation in virtual currencies. Additionally, the SPC aims to tackle data ownership and liability issues related to AI-generated content.

China has maintained a hardline stance on decentralized cryptocurrencies since 2013, with a blanket ban on all crypto transactions and mining activities. However, enforcement remains a challenge, as seen in recent high-profile cases. In contrast, the country continues to expand the adoption of its digital yuan, which is part of Beijing's strategy to replace privately-issued stablecoins with state-controlled digital money.

The SPC's guidelines are expected to complement existing policies and help courts address disputes linked to crypto activities that persist despite the ban. The move highlights the contrast between China's clampdown on decentralized assets and its push for CBDC adoption, which may have implications for global crypto markets.