Is virtual currency legal?

Virtual currency refers to unreal currency, which only has commodity attributes in essence, but has no monetary attributes. At present, there are hundreds of digital currency issued worldwide. At present, popular digital currency includes Bitcoin, Litecoin and Infinite Coin. According to the notices and announcements issued by the People's Bank of China and other departments, virtual currency is not issued by the monetary authorities, has no monetary attributes such as legal compensation and coercion, is not a real currency, has no legal status equivalent to currency, and cannot and should not be used as currency in the market. Citizens' investment and trading in virtual currency are not protected by law, and it is strictly forbidden for any organization or individual to illegally engage in token issuance and financing activities.

20 13 the people's bank of China, the Ministry of industry and information technology, the China banking regulatory commission, the China securities regulatory commission and the China insurance regulatory commission pointed out that bitcoin has four characteristics: no centralized issuer, limited total amount, unrestricted use and anonymity. Although bitcoin is called "currency", it is not a real currency because it is not issued by the monetary authorities and has no monetary attributes such as legal compensation and coercion. In nature, bitcoin should be a specific virtual commodity, which does not have the same legal status as currency, and cannot and should not be used as currency in the market.

At this stage, financial institutions and payment institutions are not allowed to price products or services with Bitcoin, buy or sell Bitcoin as a central counterparty, underwrite insurance business related to Bitcoin or include Bitcoin in the scope of insurance liability, or directly or indirectly provide customers with other services related to Bitcoin, including: providing customers with services such as Bitcoin registration, trading, clearing and settlement; Accept bitcoin or use bitcoin as a payment and settlement tool; Carry out bitcoin exchange services between RMB and foreign currency; Conduct bitcoin storage, custody, mortgage and other businesses; Issuing financial products related to Bitcoin; Take Bitcoin as the investment target of trusts, funds and other investments.

2065438+September 4th, 2007, the People's Bank of China, the Central Network Information Office, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission jointly issued the Announcement on Preventing the Financing Risks of Token Issuance, which regulated the behavior of "Token Issuance Financing" in Sheng Xing at that time. It is clear that token issuance financing refers to the so-called "virtual currency" raised by the financing subject from investors through illegal sale and circulation of tokens, which is essentially an unauthorized illegal public financing behavior, suspected of illegal selling of token certificates, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal and criminal activities. Therefore, it is strictly forbidden for any organization or individual to illegally engage in token issuance financing activities.

On August 24th, 20 18, the China Banking Regulatory Commission, the Central Network Information Office, the Ministry of Public Security, the People's Bank of China and the General Administration of Market Supervision jointly issued "Risk Tips on Preventing Illegal Fund Raising in the Name of Virtual Currency and Blockchain", pointing out that under the banner of "financial innovation" and "blockchain", funds were absorbed by issuing so-called virtual currency, virtual assets and digital assets.

On May 8, 20021,18, in view of the objective situation that the price of virtual currency soared and plummeted and the speculative activities of virtual currency transactions rebounded, the China Internet Finance Association, the China Banking Association and the China Payment and Clearing Association jointly issued the Announcement on Preventing the Speculative Risks of Virtual Currency Transactions, reiterating that virtual currency only has the property of commodities and does not have the essence of currency ownership, and clearly pointing out that, Speculation in virtual currency transactions breeds the risk of illegal cross-border transfer of assets, money laundering and other criminal activities, which seriously infringes on people's property safety, and once again requires relevant institutions not to carry out virtual currency-related business.

In addition, we need to pay special attention to the revised General Principles of the Civil Law of People's Republic of China (PRC) and the National Law, which were deliberated and adopted by the National People's Congress on March 20 17. The newly added article 127 stipulates: "If the law has provisions on the protection of data and network virtual property, such provisions shall prevail." This is the first time that China's civil law has included network virtual property into civil rights and into the scope of civil law protection. This means that although the country severely cracked down on the speculation of virtual currency transactions in the financial sector, Bitcoin has the property of virtual property. Therefore, in some cases in judicial practice, the law still protects contract disputes arising from using Bitcoin as a commodity or property.

Therefore, we should have a correct understanding of money, treat virtual goods and virtual currency correctly, invest rationally, control investment risks reasonably, and safeguard our own property safety.

legal ground

Notice of the People's Bank of China, Ministry of Industry and Information Technology, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission on Preventing Bitcoin Risks

First, correctly understand the attributes of Bitcoin.

Bitcoin has four main characteristics: no centralized issuer, limited total amount, unlimited use and anonymity. Although bitcoin is called "currency", it is not a real currency because it is not issued by the monetary authorities and has no monetary attributes such as legal compensation and coercion. In nature, bitcoin should be a specific virtual commodity, which does not have the same legal status as currency, and cannot and should not be used as currency in the market.

Two. Financial institutions and payment institutions are not allowed to conduct business related to Bitcoin.

At this stage, financial institutions and payment institutions are not allowed to price products or services with Bitcoin, buy or sell Bitcoin as a central counterparty, underwrite insurance business related to Bitcoin or include Bitcoin in the scope of insurance liability, or directly or indirectly provide customers with other services related to Bitcoin, including: providing customers with services such as Bitcoin registration, trading, clearing and settlement; Accept bitcoin or use bitcoin as a payment and settlement tool; Carry out bitcoin exchange services between RMB and foreign currency; Conduct bitcoin storage, custody, mortgage and other businesses; Issuing financial products related to Bitcoin; Take Bitcoin as the investment target of trusts, funds and other investments.