Bitcoin and cryptocurrencies are assets with the attributes of virtual property, and should be treated as such according to Chinese law, a court ruled last week in a landmark case that affirms the legality of alternative currencies in the country.

The Hangzhou Internet Court, which was established in 2017, ruled Thursday that Bitcoin and other cryptocurrencies are "valuable, scarce and disposable," qualifying them as virtual property.

While China has moved to ban and shut down platforms that allow the trading of cryptocurrencies like Bitcoin, the outcome of this trial confirms that the ownership of such virtual coins is not illegal.

The case dates back to 2013, a time when there were no regulations preventing the buying and selling of cryptocurrencies. The lawsuit, filed by a man surnamed Wu, came after the plaintiff spent 20,000 yuan on 2.675 Bitcoin through an online Taobao store, and opted to keep the currency in a virtual wallet.

Three years later in 2017, Wu wanted to access his Bitcoin, but discovered the Taobao store had closed in 2014, and that it was impossible to contact the store's operator.

Wu then took the case to the Hangzhou Internet Court, alleging the operator gave no notice of the store's closure, while also accusing Taobao of allowing the illegal sale of cryptocurrencies.

The case was dismissed due to lack of evidence, but court documents describing Bitcoin and cryptocurrencies as virtual property gained attention from the virtual coin community.

However, as the Beijing News reports, Bitcoin's status as virtual property does not mean it is legally recognized as a form of currency or money.

Despite a huge slump in the value of Bitcoin since 2017, this year has seen a surge of investor interest in the cryptocurrency, with prices more than tripling.

The 2.675 Bitcoin that Wu claimed to have bought for 20,000 yuan would today be worth almost 195,000 yuan (28,350 U.S. dollars).

Hype has again grown around Bitcoin after Facebook last month announced plans to launch its own Libra cryptocurrency, but many economists and central bankers have reacted with skepticism.

Federal Reserve Chair Jerome Powell said earlier this month that Libra cannot go forward unless Facebook addresses "many serious concerns" over money laundering, security and financial stability.