Is personal virtual currency trading legal?
In fact, this issue is still very complicated and needs to be analyzed on a case-by-case basis.
Today, the assassin will make a detailed interpretation of whether ordinary people’s personal non-commercial virtual currency transactions are illegal.
There are many regulatory policies for virtual currencies, the important ones are:
In 2013, they explicitly denied the currency attribute of cryptocurrencies and prohibited financial institutions from participating to prevent money laundering risks. In 2017, ico was defined as illegal fundraising, and it was clearly forbidden to engage in illegal coin offering financing activities;
In 2021, mining will be defined as an obsolete industry, and relevant industrial activities in China will be cleared up by the end of the year;
In 2021, it was made clear that activities related to providing cryptocurrency services in China are suspected of illegal financial activities, and if they constitute crimes, criminal responsibilities shall be investigated according to law.
However, none of this is relevant to ordinary investors. The main restrictions are on the service side, i.e., otc merchants on exchanges and so on.
So what exactly are the rules for ordinary investors?
Let’s take a look at the latest 924 notice for 2021.
Article 1, Paragraph 4 of the 924 circular stipulates that participating in virtual currency investment trading activities is subject to legal risks.
Any legal person, unlegal person organization or natural person investing in virtual currency and related derivatives shall be invalid if it violates public order and good customs. The losses caused thereby shall be borne by the legal person themselves. If it is suspected of disrupting financial order and endangering financial security, it shall be investigated and dealt with by relevant departments according to law.
This one, which describes the behavior of the average investor, translates as,
First, ordinary people can invest in cryptocurrencies and related derivatives. Although nft is not explicitly mentioned, it is more likely to be identified as derivatives.
Second, investment risks are borne by the investors themselves, and investors’ rights and interests may not be protected by Chinese laws.
Third, if the investment behavior of legal persons, unincorporated organizations and natural persons is suspected of disrupting financial order and endangering financial security, they shall still bear legal liabilities.
If you want to play, you can play. You are not prevented from making money. But if you lose money, don’t blame the country for not advising you.
In addition, if you cut leeks, cause economic volatility, drive other people to death, the state will punish you.
Only by understanding the spirit can you know where the boundaries are. Only by knowing the boundaries can you make no mistakes. Only by not making mistakes can you spend the money you earn.
In fact, it is very important, not written out, that is you play, but receive black money accident.
I am an assassin and I wish you a good one.
