Chinese Court Declares Crypto Trading as Gambling in Landmark Ruling
Despite China’s longstanding ban on cryptocurrency transactions, a recent court decision has made headlines by classifying trading on the BKEX exchange as a form of illegal gambling.
According to local reports, the People’s Court of Pingjiang County, Hunan Province, ruled that Bitcoin and altcoin trading on BKEX involved speculative betting rather than legitimate financial transactions. The court’s decision specifically targeted perpetual contracts, which allowed users to wager USDT with high leverage on the price movements of Bitcoin (BTC) and Ethereum (ETH).
Authorities argued that the exchange effectively operated as an online casino, drawing in a large user base of 270,000 traders. Several employees and representatives of BKEX were convicted for their roles in facilitating what the court deemed an illegal gambling operation.
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The court’s final ruling revealed that BKEX generated nearly 54.8 million USDT (approximately 300 million yuan) through various fees, including those charged on withdrawals, liquidations, and leveraged bets. This revenue model reinforced the court’s stance that the platform functioned as a gambling enterprise rather than a legitimate trading venue.
China’s firm stance against cryptocurrency trading remains intact, with this decision further underscoring the risks for platforms operating within the country.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
