#密码资产动态追踪 Shanghai Second Intermediate Court Releases New Determination on Virtual Currency Crime Cases: Individual Coin Trading Generally Not Illegal
The Shanghai Second Intermediate People's Court recently organized a seminar and clarified important consensus on the legal characterization of virtual currency-related activities. One key conclusion went viral: individuals holding and trading cryptocurrencies are generally not convicted of illegal business operations.
How to understand this? The court provided specific case examples. Li某 bought and sold virtual currencies on domestic and foreign platforms at low prices and sold at high prices, earning millions in price differences. The court's ruling was—this is merely personal arbitrage behavior with no provision of operational services to the general public, so it does not constitute illegal business operations.
However, there is an important dividing line here. The establishment of illegal business operations hinges on three points: whether the purpose is profit-making? Whether services are continuously provided to unspecified entities? Whether organizational characteristics exist? As long as these characteristics are not prominent, individual trading is difficult to criminalize.
However, the law has also drawn red lines. If you knowingly help others conduct illegal foreign exchange transactions by exchanging virtual currencies, serious circumstances will be recognized as complicity. There is another situation to be vigilant about: using virtual currency as a medium to provide currency exchange services to unspecified customers and charge transaction fees—this is essentially illegal "underground banking," which must be prosecuted as a criminal offense.
This judicial refinement protects the normal trading space of ordinary investors while precisely cracking down on illegal activities that use virtual currencies to disrupt financial order. However, it must be reminded that virtual currencies themselves are not legal tender, and trading carries civil risks, with losses to be borne by individuals. This set of standards from judicial authorities establishes clear behavioral norms for the market.
#密码资产动态追踪 Shanghai Second Intermediate Court Releases New Determination on Virtual Currency Crime Cases: Individual Coin Trading Generally Not Illegal
The Shanghai Second Intermediate People's Court recently organized a seminar and clarified important consensus on the legal characterization of virtual currency-related activities. One key conclusion went viral: individuals holding and trading cryptocurrencies are generally not convicted of illegal business operations.
How to understand this? The court provided specific case examples. Li某 bought and sold virtual currencies on domestic and foreign platforms at low prices and sold at high prices, earning millions in price differences. The court's ruling was—this is merely personal arbitrage behavior with no provision of operational services to the general public, so it does not constitute illegal business operations.
However, there is an important dividing line here. The establishment of illegal business operations hinges on three points: whether the purpose is profit-making? Whether services are continuously provided to unspecified entities? Whether organizational characteristics exist? As long as these characteristics are not prominent, individual trading is difficult to criminalize.
However, the law has also drawn red lines. If you knowingly help others conduct illegal foreign exchange transactions by exchanging virtual currencies, serious circumstances will be recognized as complicity. There is another situation to be vigilant about: using virtual currency as a medium to provide currency exchange services to unspecified customers and charge transaction fees—this is essentially illegal "underground banking," which must be prosecuted as a criminal offense.
This judicial refinement protects the normal trading space of ordinary investors while precisely cracking down on illegal activities that use virtual currencies to disrupt financial order. However, it must be reminded that virtual currencies themselves are not legal tender, and trading carries civil risks, with losses to be borne by individuals. This set of standards from judicial authorities establishes clear behavioral norms for the market.