[Shanghai Court: Individuals simply holding virtual currency is not illegal in itself] On November 20, the Shanghai High People's Court recently made a clear statement on a virtual currency issuance and financing service contract dispute case. Virtual currency has property value as a commodity. It is not illegal for individuals to simply hold it, but commercial entities shall not participate in virtual currency investment or token issuance without authorization. In the case, an agricultural development company (Company X) commissioned an investment management company (Company S) to assist in the issuance of tokens and paid a service fee of 300,000 yuan, but the tokens were not issued as scheduled. The court determined that the essence of token issuance financing was illegal public financing, and the agreement violated financial regulatory regulations and was invalid, and ordered Company S to return 250,000 yuan. The court emphasized that virtual currency-related businesses are prone to suspected illegal activities such as illegal issuance of securities and illegal fundraising, disrupting the financial order. If a contract involving virtual currency violates the mandatory provisions of the law, it will be deemed invalid, and the relevant parties will be required to bear the corresponding legal responsibilities. The court reminded enterprises and individuals to be cautious about virtual currency-related businesses and avoid legal risks.