The reason for this is the following：

1, the behavior of virtual currency investment and trading is legal, and only those who commit crimes through virtual currency investment and trading are illegal.

2. Virtual currency is an electronic currency generated by open source P2P software, not issued by a specific monetary institution. The law does not expressly stipulate that virtual currency is illegal. According to the principle of legality, virtual currency is not illegal, but criminals may use it to commit crimes.

3. Virtual currency is not real currency, but exists in the network world in digital form. Different from traditional currency, virtual currency cannot be circulated in the market as currency, and its investment and transaction are not protected by law. Virtual currency is not issued by monetary authorities, has no monetary attributes such as legal compensation and coercion, and has no legal status equivalent to currency, so it has certain transaction risks.

The essential attribute of virtual currency business activities;

1. Virtual currency does not have the same legal status as legal tender. For example, virtual currencies such as Bitcoin, Ethereum and TEDA have no legal compensation and should not and cannot be circulated in the market as currency.

2. Activities related to virtual currency, such as legal tender and virtual currency exchange business, virtual currency exchange business, buying and selling virtual currency as a central counterparty, providing information intermediary and pricing services for virtual currency transactions, token issuance financing and virtual currency derivatives trading, are suspected of illegal financial activities such as illegal issuance of token tickets, unauthorized public issuance of securities, illegal futures business and illegal fund-raising. If the related illegal financial activities constitute a crime, criminal responsibility shall be investigated according to law.

3. Domestic staff of relevant overseas virtual currency exchanges, as well as legal persons, unincorporated organizations and natural persons who know or should know that they are engaged in virtual currency-related businesses and still provide them with services such as marketing promotion, payment and settlement, and technical support, shall be investigated for relevant responsibilities according to law.

4. There are legal risks in participating in virtual currency investment and trading activities. If a legal person, an unincorporated organization or a natural person violates public order and good customs by investing in virtual currency and related derivatives, the relevant civil legal acts shall be invalid and the losses shall be borne by themselves; Suspected of undermining financial order and endangering financial security, the relevant departments shall investigate and deal with it according to law.

I hope the above content can help you. Please consult a professional lawyer if you have any other questions.

Legal basis: People's Republic of China (PRC) Criminal Law.

Article 192 The crime of fund-raising fraud refers to illegal fund-raising by fraudulent means for the purpose of illegal possession. If the amount is relatively large, it shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and shall also be fined. If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than seven years or life imprisonment, and shall also be fined or confiscated.

If a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.