A Chinese judge ruled: "It is not illegal for individuals to hold virtual currencies" but it is prohibited to do so. Can the restraining order be lifted?

Judge Sun Jie of the Shanghai Higher People's Court recently stated that in mainland China, although virtual currency does not have the same legal status as legal tender, as a virtual commodity, it still has property value. At the same time, it is not illegal for individuals to simply hold virtual currencies. (Preliminary summary: Chinese official media: The United States’ attempt to embrace Bitcoin marks the end of the dollar era) (Background supplement: Investing in Bitcoin and incurring huge debts smuggled people to Taiwan! Chinese prince was arrested and shouted: I have freedom of speech) Judge Sun Jie of the Shanghai Higher People's Court recently stated in a legal case related to cryptocurrency that in mainland China, although virtual currency does not have the same legal status as legal tender, as a virtual commodity, it still has property value. At the same time, it is not illegal for individuals to simply hold virtual currencies. Token issuance and financing is not legal. However, the Shanghai High Court also pointed out in the trial of this case that token issuance and financing activities in mainland China are essentially illegal and unapproved public financing activities and should be treated as suspected illegal sales of tokens. Therefore, any organization or individual cannot currently engage in token issuance and financing activities in China. Therefore, in this case, Company The Blockchain Incubation Agreement) also does not comply with legal provisions and is of course invalid. Why are virtual currency-related business activities strictly restricted by China? However, many Chinese authorities currently recognize that virtual currency has property attributes, and it is not completely prohibited by law. So why are virtual currency-related activities subject to strict restrictions? In this regard, Judge Sun Jie explained: On the one hand, virtual currency will disrupt financial order and endanger financial security; on the other hand, if virtual currency is allowed to enter the financial market, it will damage social and public interests. The anonymity and decentralization characteristics of virtual currency itself , it is also extremely easy to be exploited by illegal transactions, and even become a medium for illegal crimes, which will seriously endanger the property security of the people. Can China still lift its encryption ban? We know that China used to be one of the largest incubators of cryptocurrency. Currently, all major centralized exchanges and Bitcoin mining companies on the market have Chinese backgrounds. However, since mainland China has suspended all ICO activities and completely liquidated cryptocurrency exchanges in September 2017, and issued a mining ban in September 2021, cryptocurrency-related activities have been generally judged as illegal activities in China. However, despite the official ban, gray channels for private cryptocurrency activities still exist. For example, major exchanges currently provide P2P trading channels, and users can still deposit and withdraw money through bank transfers, WeChat and Alipay. At present, not only has the United States approved spot ETF products for Bitcoin and Ethereum this year, but Hong Kong, China has also followed closely to list Bitcoin and Ethereum spot ETFs; at the same time, after Trump won, major listed companies in the United States and Private companies began to announce investments in Bitcoin, and Trump even called for the United States to include Bitcoin in its asset reserves. Therefore, as the world's second largest economy and a long-term competitor of the United States, whether China will compete with the United States on Bitcoin has become one of the issues that investors are most concerned about. Whether China's attitude towards cryptocurrencies such as Bitcoin will eventually be relaxed is worthy of our continued attention. Related reports: Xiao Feng: Trump’s support for Crypto may allow China to restore its digital asset market. The U.S. caused TSMC to “cut off the supply of chips below 7 nanometers to China” and the stock price was frightened down by more than 3%. Taiwan stocks fell more than 500 points and fell below the monthly line. China The new stimulus policy is weak, A-shares fell after rising high, and the People's Bank of China proposed five major goals to rescue the market. "A Chinese judge ruled: It is not illegal for individuals to hold "virtual currencies" but it is prohibited to do so. Can the restriction order be lifted? "This article was first published in BlockTempo (Dong District Dongzhu - the most influential blockchain news media).