After determining the attributes of virtual currency, can legally held virtual currency be sold legally?


The “9.24 Notice” defines all virtual currency-related business activities as illegal financial activities.

Specifically including: (1) legal currency and virtual currency exchange business; (2) virtual currency exchange business; (3) buying and selling virtual currency as a central counterparty; (4) providing information intermediary and pricing services for virtual currency transactions; (5) token issuance financing and virtual currency derivative transactions, etc.


At the same time, the "9.24 Notice" immediately stipulates: "Any legal person, non-legal person organization or natural person who invests in virtual currency and related derivatives and violates public order and good morals will have their relevant civil acts invalid, and the losses caused by this will be borne by themselves."


Here we need to distinguish between "business activities" and "investment". If the business activities involve exchanging legal currency for virtual currency, exchanging virtual currency with other virtual currencies, etc. (taking this as a business, involving huge quantities, etc.), it is an illegal financial activity prohibited by the state; if it is an investment activity in virtual currency, it is a market investment behavior that is not protected by law, but it is not an illegal financial activity.


The "investment" here certainly includes the act of buying, but whether it includes the act of selling is controversial. So at present, buying virtual currency and holding it is not illegal at all; however, if the regulator determines that the person is engaged in this business, or the amount is huge and disrupts the financial order, the sale of virtual currency may still be considered an illegal financial activity.

Reasons for freezing bank cards


The most common reason for freezing bank cards due to selling U (or other virtual currencies) is receiving fraudulent funds (or other types of stolen money or black money). There may be huge differences between veterans and novices in the cryptocurrency circle in terms of professional knowledge and investment experience, but once it comes to the issue of withdrawal, there seems to be a Buddhist or constitutional meaning of equality of all beings.


Because whether you are looking for high-quality OTC merchants in virtual currency exchanges, or "reliable" netizens in telegram groups or WeChat groups, as long as it involves online transactions with strangers, at least three or four out of ten will involve stolen money. Nowadays, there are tens of billions or hundreds of billions of virtual currency cases in the news. How are these virtual currencies involved in the case laundered? Many of them are realized by finding people online. It is not uncommon for the parties to sell U in the head exchange in the morning and have their cards frozen in the afternoon. Therefore, we have always suggested that for ordinary novice players, the safest thing is to hold virtual currency all the time.


How to prevent your card from being frozen?


To put it simply, preventing your card from being frozen means preventing you from receiving stolen money.

According to our team's extensive practical experience, the following steps can basically ensure that your card will not be frozen:

First, try to trade offline and with acquaintances as much as possible. As for how familiar you are, at least you need to know the other party's name, and it is best to also know their ID number, mobile phone number, WeChat account, and residential address (for example, ask the other party to provide a photo of their ID card);

Second, when trading online, refuse to use encrypted communication software, self-destructing software, etc. Although the leading exchanges cannot guarantee 100% security, they are still a more reliable choice at present. However, when choosing, you can look for some U-merchants with a registration time of more than 2 years, more than 1,000 transactions, and a good reputation.


In reality, some people choose offline cash transactions with strangers. Of course, they won’t have their bank cards frozen if they don’t use them. It seems safe but it actually carries a greater risk. We have encountered many cases where people were defrauded or even robbed when conducting offline transactions with strangers, so we strongly recommend it.


Applying for a MasterCard U card is also a good choice, but you will have to bear a 5%-7% wear and tear!

Hong Kong OTC is also a good choice, but if you are not the big shot who has immigrated overseas, there is really no need to do this for a few small things!

The membership cards of various platforms redeemed on some platforms are subject to greater wear and tear, which may reach more than 15%. To put it bluntly, this is only suitable for those "big guys" whose money is not their own. Ordinary people are unwilling to bear such great wear and tear!

Wait, there are many more ways to market!

However, I suggest that you don’t need to withdraw cash frequently. Just withdraw it once a month and treat it as salary. Don’t make yourself go in and out dozens of times a day like a U merchant!

⚠️Currently, the investment and trading of virtual currencies are not protected by national laws. It is difficult to protect your rights through legal means if you suffer losses from virtual currency transactions, except when it involves criminal cases.