In recent years, the virtual currency trading market has flourished, but in China, relevant regulatory policies have always been quite strict.
In 2013, the “Notice on Preventing Bitcoin Risks” made clear regulations on Bitcoin for the first time, pointing out that Bitcoin does not have monetary attributes and prohibiting financial institutions and payment institutions from conducting Bitcoin-related businesses.
Subsequently, the 2017 “Announcement on Preventing the Risks of Token Issuance and Financing” explicitly banned token issuance and financing (ICO) activities.
Recently in 2021, the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Transaction Speculation" emphasized the strict prohibition of virtual currency-related business activities and clearly pointed out that they are illegal financial activities.
In this context, whether individual cryptocurrency speculation (buying and selling cryptocurrencies) is legal has become the focus of attention of investors.
According to the relevant laws and regulations of our country, individual cryptocurrency speculation itself is not explicitly defined as an illegal act, but there are high legal risks.
Specifically, the following situations may involve violations of law:
1. Illegal business operation: If an individual’s buying and selling of virtual currency is deemed to be a business activity and is conducted without permission, he or she may be held accountable for illegal business operation.
2. Illegal fund-raising: Those who illegally raise funds through virtual currency may be prosecuted for the crime of illegal fund-raising.
3. Fraud: Those who use virtual currency to commit fraud may be prosecuted for fraud.
4. Money laundering: Using virtual currency to conduct money laundering activities may result in prosecution for money laundering.
Therefore, individual cryptocurrency speculation itself is not illegal, but because virtual currency transactions carry a high degree of legal and regulatory risks, individuals need to be cautious when engaging in such activities to avoid being involved in illegal activities.
In any investment behavior, compliance with laws and regulations, rational investment, and prudent decision-making are crucial. We hope that investors will invest rationally, comply with laws and regulations, and jointly maintain a good market order.
