Pacta sunt servanda in the age of cryptocurrency

Abstract

This chapter offers a descriptive and analytical account of how the concept of pacta sunt servanda in Chinese law has been thrust into a state of uncertainty amidst China’s changing cryptocurrency regulatory landscape. Our research shows that in the face of the legal ambiguity sparked by China’s shifting regulatory stance, the Chinese courts have diverged in their approaches to the validity and enforceability of crypto investments and transactions. In particular, some Chinese courts and contract parties have invoked illegality to limit pacta sunt servanda in cases involving cryptocurrency transactions. Using China as a case study, the chapter highlights the potential challenges that pacta sunt servanda may face in times of rapidly evolving new technologies.