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Shanghai High Court Voice:
Holding virtual currency personally is not illegal, but issuing currency is!
Everyone, did you know? Recently, the Songjiang District Court in Shanghai tried a case related to virtual currency, let's talk about it.
It turns out that there was a company X, back in 2017, seeing that ICO (Initial Coin Offering) was quite popular, wanted to issue their own virtual currency for fundraising. So, they found company S and signed a "Blockchain Incubation Agreement," hoping S would help create a “white paper” and issue tokens based on blockchain technologies like Bitcoin and Ethereum.
Guess what happened? A year passed, and the tokens still hadn't been issued. When company X asked, company S said that to issue tokens, they first needed to develop an APP, but developing an APP was too expensive, and they weren't going to do it; company X had to handle it themselves. Hearing this, company X felt disheartened and directly sued company S in court, demanding to terminate the contract and to return the 300,000 service fee.
So, what was the court's final ruling? The judge said that virtual currency is like a virtual commodity, which has value. It's fine for individuals to hold it; it's not illegal. However, if you are a company or something similar, and you want to casually participate in virtual currency investment transactions or even issue your own tokens, that’s not acceptable.
So, everyone should remember, it's fine for individuals to play with virtual currency, but if you want to do something big, like issuing tokens, you still need to be careful and not accidentally cross the red line!
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