In today's digital age, cryptocurrency has become one of the hot topics of people's attention. In China, as one of the most well-known cryptocurrencies, the legality of Bitcoin is controversial. Many people are curious, is it illegal or legal for individuals to hold Bitcoin in China? This issue involves multiple fields such as law, finance and technology. Let's explore it in depth.

First of all, we need to understand the nature of Bitcoin itself. Bitcoin is a virtual digital currency that is not issued and regulated by any central agency, and its transaction records are verified and stored through blockchain technology. In China, although the People's Bank of China and seven other ministries and commissions issued a document in 2013 prohibiting financial institutions from conducting Bitcoin transactions, there is no clear prohibition on individuals holding Bitcoin. This means that in China, it is not illegal for individuals to hold Bitcoin.

However, things are not that simple. Although it is not illegal for individuals to hold Bitcoin, there are some risks and legal loopholes in actual operations. For example, in recent years, the Chinese government has stepped up its crackdown on cryptocurrency exchanges, and many trading platforms have been banned, which has brought trading and liquidity problems to individuals holding Bitcoin. In addition, due to the anonymity and cross-border nature of Bitcoin transactions, there are also certain legal risks, such as being used for illegal transactions or money laundering.

From a regulatory perspective, the Chinese government has been strengthening its supervision of the cryptocurrency sector. At the end of 2017, Chinese regulators made it clear that they would ban domestic Bitcoin exchanges, a move that caused market shocks. Subsequently, the Chinese government has introduced a series of regulatory policies to restrict the trading and circulation of cryptocurrencies such as Bitcoin. This strict regulatory policy has made the legality of individual Bitcoin holding controversial, and has also made people full of doubts about future development.

In addition to regulatory policies, the volatility of Bitcoin is also a major test for individual holdings. The sharp fluctuations in Bitcoin prices have deterred many investors, fearing that their investments will evaporate. Especially in China, the ups and downs of Bitcoin prices have made people dare not act rashly. This has also led to some people's wavering attitudes towards personal Bitcoin holdings, with some choosing to hold firmly and others choosing to sell to stop losses.

However, despite regulatory risks and price fluctuations, Bitcoin, as an emerging digital asset, is still very popular. Many people believe that Bitcoin has the characteristics of decentralization, anonymity and scarcity, and is an asset with investment and risk aversion value. Especially on a global scale, Bitcoin's application scenarios are becoming more and more extensive, and it is accepted and recognized by more and more people.

In general, it is not illegal for individuals to hold Bitcoin in China, but in actual operations, it is necessary to pay attention to changes in regulatory policies and the risk of price fluctuations. For ordinary investors, it is very important to understand the nature of Bitcoin, invest rationally, and comply with regulatory policies. At the same time, government departments also need to strengthen supervision in the field of cryptocurrency, protect the legitimate rights and interests of investors, and promote the healthy development of the industry.

In this era full of variables, the legality of Bitcoin is still a topic worthy of in-depth discussion. With the continuous development of technology and the continuous improvement of regulatory policies, I believe that the future of Bitcoin and other cryptocurrencies will be brighter. Let us wait and see, and witness the development of this digital currency together.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

With the continuous development of blockchain technology, some virtual digital currencies such as Bitcoin have also gained more and more widespread attention. Many investors have begun to notice the market of encrypted digital currencies and gradually have the idea of investing in encrypted digital currencies. When Bitcoin was first introduced into China, it seemed to have been promoted under the banner of digital currency, which not only attracted the attention of a large number of investors, but also received special attention from national regulatory authorities. That is, from then on, the country began to regulate the Bitcoin market. Many investors also began to worry about whether holding Bitcoin is illegal, and therefore hesitated to take action. Today, the editor of Ranbi Circle will give you an article to explain whether it is illegal for individuals to hold Bitcoin in China?

 An article to explain whether it is illegal for individuals to hold Bitcoin in China?

First, the conclusion: holding Bitcoin is legal.

This article demonstrates the legality of holding Bitcoin from two aspects: legal documents and judicial practice.

Legal documents

On December 3, 2013, the People's Bank of China, the Ministry of Industry and Information Technology, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission jointly issued Document No. 289, namely the "Notice on Preventing Bitcoin Risks", hereinafter referred to as the "Notice".

In the first article of the Notice, the correct understanding of the properties of Bitcoin states:

In terms of nature, Bitcoin should be a specific virtual commodity that does not have the same legal status as currency and cannot and should not be circulated and used as currency in the market.

This sentence has two meanings:

The first meaning is that in China, the only legal currency is RMB, Bitcoin is not legal tender, and should not be circulated as a currency in the market.

The second meaning is that although Bitcoin is not a currency and cannot be circulated as a currency. But it is a virtual commodity and can be circulated as a commodity. Just like stocks, bonds and other commodities, anyone can hold and buy and sell it.

Since then, neither the central documents nor the laws and administrative regulations of our country have prohibited citizens from holding Bitcoin.

In other words, holding Bitcoin is legal.

Judicial practice of Bitcoin

On May 6, 2020, the Shanghai No. 1 Intermediate People's Court publicly pronounced an appeal case involving Bitcoin.

In this case, the four suspects Yan Dong, Lv Fang, Zhang Fei, and Fu Yun (Malaysian nationality) used beatings and threats to force the victims Peter and Wang Xiaoli to transfer 18.88 bitcoins and 6,466 Skycoins to their own accounts.

Peter and Wang Xiaoli sued Yan Dong and others in court, requesting the return of bitcoins and Skycoins. The first instance court ruled that Yan Dong and the other four should jointly return 18.88 bitcoins and 6,466 Skycoins to Peter and Wang Xiaoli. If they could not return them, they would be compensated at 42,206.75 yuan per bitcoin and 80.34 yuan per Skycoin according to the closing price of bitcoin and Skycoin transactions published on June 12, 2018 by the cryptocurrency market website  and the US dollar exchange rate on that day.

Yan Dong and the other four were dissatisfied and chose to appeal.

In the second instance, Peter and Wang Xiaoli voluntarily gave up the pursuit of Skycoins, but insisted on pursuing bitcoins. The court of second instance made corresponding changes to the relevant contents of Skycoin in the first instance judgment, and maintained the other contents of the judgment. Yan Dong and the other four people had to compensate Peter and Wang Xiaoli at the price of 42,206.75 per bitcoin.

The significance of this case is that it recognizes that virtual currencies such as Bitcoin belong to the category of property and are protected by law.

In summary, this is the article by the editor of the Coin Circle to explain whether it is illegal for individuals to hold Bitcoin in China. I hope that this article by the editor of the Coin Circle can help investors to improve their legal knowledge of Bitcoin and make safer and legal investments. The editor of the Coin Circle reminds all investors here that Bitcoin is currently a virtual commodity in my country and is part of our personal property, so it is also protected by law. In my country, anyone can buy and sell Bitcoin, but the risks of the trading process are borne by ourselves, so everyone must pay attention to the risks under the premise of legal investment.