Whether it is legal for individuals to buy and sell virtual currency is essentially a question of whether the law protects virtual currency such as Bitcoin from circulating among individuals as a kind of online virtual property. For most people, virtual currency, like stocks, is a derivative used for investment, appreciation and income. Its value is realized through the circulation of this property among different investors. If the transaction itself is not protected by law, there is no legal basis for the realization and transfer of virtual currency value, and there is no possibility of income.

But it is illegal to use virtual currency to engage in illegal activities. Without the approval of the relevant competent departments of the state, it is illegal to engage in securities, futures and insurance business, or illegally pay settlement funds. The object of this crime should be market order. In order to ensure that the sale of goods and the import and export market of goods are restricted, the state implements the system of goods business license.

Virtual currency exists legally in China, but it is illegal to use virtual currency to engage in illegal activities. Bitcoin is defined as a special Internet commodity in China. At this stage, financial institutions are not allowed to provide products or services related to Bitcoin. Bitcoin cannot and should not be used as currency. Bitcoin is not issued by the monetary authorities, and has no monetary attributes such as legal compensation and coercion, so it is not a real currency. Virtual currency refers to unreal currency. 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 transactions in virtual currency are not protected by law.

There are mainly four kinds of virtual currency in the market:

legal ground

Article 225 of the Criminal Law

Whoever, in violation of state regulations, commits one of the following illegal business operations and disrupts the market order, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also, or shall only, be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times for illegal gains or confiscation of property:

(a) operating a franchise or monopoly commodity or other commodities whose operation is restricted by laws and administrative regulations without permission;

(2) buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated by laws and administrative regulations;

(three) without the approval of the relevant competent departments of the state, illegally engaged in securities, futures, insurance business, or illegally engaged in fund payment and settlement business;

(four) other illegal business activities that seriously disrupt the market order.