Legal analysis: 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. Counterfeit money such as Swiss Thai currency and Litecoin is also applicable. Token issuance financing refers to the so-called "virtual currency" raised by the financing subject from investors through illegal sale and circulation of tokens. It is essentially an unauthorized illegal public financing behavior, which is suspected of illegal selling of token tickets, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal and criminal activities.

Legal basis: Article 19 of the Regulations on the Prevention and Disposal of Illegal Fund-raising is suspected of illegal fund-raising. The lead department in handling illegal fund-raising shall promptly organize relevant industry authorities, regulatory authorities, branches and agencies of the State Council financial management department to investigate and determine that: (1) Internet enterprises, investment and investment consulting enterprises, various trading places or platforms, farmers' professional cooperatives, mutual funds organizations and other organizations shall be established to absorb funds; (2) Issuing or transferring equity and creditor's rights, raising funds, selling insurance products, or absorbing funds in the name of engaging in various asset management, virtual currency, financial leasing business, etc.; (three) in the sale of goods, services, investment projects and other commercial activities. Absorb funds in the form of promising to pay monetary, equity, physical and other returns; (four) in violation of laws, administrative regulations or the relevant provisions of the state, through the mass media, instant messaging tools or other means to publicly spread the information of absorbing funds; (5) Other acts suspected of illegal fund-raising.