Illegal.

The lawyer believes that this so-called bank has great risks. Our country's laws only recognize "Bitcoin" as a virtual commodity. For other virtual currencies from ICO, our country's laws do not grant them legal status. It is difficult for Chinese citizens to protect their legitimate rights and interests when speculating on such virtual currencies.

A senior lawyer in the digital currency industry told reporters that on September 4, 2017, the central bank issued the "Announcement on Preventing Token Issuance Financing Risks" stating that any so-called token financing trading platform shall not engage in legal activities. The exchange business between currencies and tokens and "virtual currencies" shall not buy or sell tokens or "virtual currencies" or act as a central counterparty, and shall not provide pricing, information intermediary and other services for tokens or "virtual currencies". Chinese laws and regulations do not yet allow Security Token to be issued in China.

It is difficult for Chinese citizens to protect their legitimate rights and interests when speculating on such virtual currencies. At the same time, due to the imperfect price discovery mechanism of virtual currency and poor market development, the price of virtual currency has fluctuated sharply. Using virtual currency for "leverage financing" can easily lead to a natural person debt crisis. In view of the fact that my country's "Personal Bankruptcy Law" has not yet If a natural person is in debt, it will have a huge psychological and social impact. Investors are advised not to try it easily.

Extended information

The reporter browsed the official website information and did not find the relevant information about the "third-party custody" mentioned. "Mr. Liu (transliteration)" of You Bank explained that the three parties refer to "You Bank, Pangu, and the depository (platform)".

According to public information, the full name of "third-party custody" is "third-party custody of customer transaction settlement funds". It is a business provided by commercial banks and is commonly used in securities, futures, real estate and other transactions. Active.

There is no commercial bank in the "third-party custody" mentioned by You Bank.

People's Daily Online-? The world’s first digital currency bank? Return on investment more than 500%? YouBank says it is "safe now"