According to our relevant laws, virtual currency refers to virtual goods issued by non-monetary authorities. It does not have legal compensation and mandatory monetary attributes. It’s not real money. Well-known virtual currencies are bitcoin, ether and so on.
Net friend consultation:
Does the country allow virtual currency transactions?
Answer by Lawyer Shi Bo of Guizhou Zhongguan Law Firm:
Virtual currency does not have any guarantee organization, legal currency is guaranteed by national credit and national compulsory power.
According to our relevant laws, virtual currency refers to virtual goods issued by non-monetary authorities. It does not have legal compensation and mandatory monetary attributes. It’s not real money. Well-known virtual currencies are bitcoin, ether and so on.
There are four main types of virtual currency on the market: game coins developed by game operators for use by players as a medium of exchange in online games; A special virtual currency issued by a portal website or instant communication tool for use in the operating network space; Interactive virtual currency that can be used within the issuing entity of virtual currency and can purchase goods and services from non-issuing entities; Based on cryptography and modern network P2P technology, through complex mathematical algorithms, a special electronic, digital network cryptocoin. Virtual currency is not issued by monetary authorities, does not have legal compensation, mandatory and other monetary attributes, and is not a currency in the real sense. It does not have the legal status equivalent to currency, and cannot and should not be used in the market as a currency. Citizens’ investment and transaction of virtual currency are not protected by law.
Attorney Shi Bo of Guizhou Zhongguan Law Firm
Virtual currency-related business activities are illegal financial activities. Virtual currency-related business activities such as legal currency and virtual currency exchange business, exchange business between virtual currencies, trading virtual currency as a central counterparty, providing information intermediary and pricing services for virtual currency trading, token issuance financing and virtual currency derivatives trading are suspected of illegal sale of token notes, unauthorized public issuance of securities, illegal futures business, and illegal Fund-raising and other illegal financial activities are strictly prohibited and resolutely outlawed in accordance with the law.
There are two possible legal consequences for individuals or entities that engage in virtual currency transactions.
(1) Civil liability. The relevant civil legal acts are invalid, and the most direct consequence is that all kinds of contracts signed by investors for investment (trading) of virtual currency and related derivatives are invalid, and the seller needs to return the investor’s investment money.
(2) Criminal responsibility. In the form of virtual currency trading, all of them obtain funds through buying and selling and issuing virtual currency. Virtual currency related business activities belong to illegal financial activities. Obtaining funds through this form must constitute the crime of illegally absorbing public deposits as long as it meets the criminal standard.
[Legal Basis]
Notice on Further Preventing and Dealing with Risks of Speculation in Virtual Currency Trading
(1) Virtual currency does not have the same legal status as legal tender. Bitcoin, Ether, Teda and other virtual currencies are not issued by monetary authorities, use encryption technology and distributed account or similar technology, exist in digital form and other major characteristics, do not have legal compensation, should not and cannot be used as money in the market circulation.
(2) Virtual currency-related business activities are illegal financial activities. Virtual currency-related business activities such as legal currency and virtual currency exchange business, exchange business between virtual currencies, trading virtual currency as a central counterparty, providing information intermediary and pricing services for virtual currency trading, token issuance financing and virtual currency derivatives trading are suspected of illegal sale of token notes, unauthorized public issuance of securities, illegal futures business, and illegal Fund-raising and other illegal financial activities are strictly prohibited and resolutely outlawed in accordance with the law. Where relevant illegal financial activities constitute crimes, criminal responsibilities shall be investigated according to law.
Introduction to Lawyer Shi Bo
Lawyer Shi Bo is a full-time lawyer of Guizhou Zhongguan Law Firm. With solid legal foundation, skilled legal skills and rich experience in case handling, he provides efficient and high-quality litigation and non-litigation legal services for our clients, and provides high-quality legal services for our clients, which is well received by our clients.
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