Beijing Coin News Report:
On August 19, the Supreme People’s Court and the Supreme People’s Procuratorate issued the “Interpretation on Several Issues Concerning the Application of Laws in Handling Money Laundering Criminal Cases”. Lawyer Liu also analyzed and interpreted it in the first time (see: “Interpretation of the New Regulations: ‘Virtual Assets’ Clearly Identified as Money Laundering Tools, What Impact Does It Have on the Coin Circle?”). However, in the past few days, friends from the coin circle have been consulting Lawyer Liu: Will virtual currency transactions be banned in Mainland China in the future? It seems like the end of the coin circle has come. Of course, I have also seen an article interpreting the judicial interpretation of the “Two Highs” as “the Supreme Court acknowledges virtual currency transactions”. In fact, both of these views are too extreme. Today, Lawyer Liu will write a simple and popular legal article to explain the impact of the “Interpretation on Several Issues Concerning the Application of Laws in Handling Money Laundering Criminal Cases” (hereinafter referred to as the “Interpretation”) on the coin circle.
I. What is the “Interpretation”?
If you have carefully read the original text of the “Interpretation”, even if you don’t understand any legal knowledge, you will notice the first sentence of the “Interpretation”: “To punish money laundering crimes in accordance with the law…”. In other words, the effectiveness of this “Interpretation” is limited to judicial organs combating money laundering crimes. In addition, in the specific provisions of the “Interpretation”, it does not stipulate that all “virtual asset transactions” are prohibited, but strictly prohibits “the transfer and conversion of proceeds of crimes and their gains through ‘virtual asset’ transactions and financial asset exchange methods”. In other words, if your virtual currency transactions are not used for money laundering activities, there is no need to be nervous. Just follow the principle of “what is not prohibited by law is allowed”. Currently, in the judicial activities in Mainland China, the principled provisions regarding virtual currency are still based on the relevant content of the “9.24 Notice” (“Notice on Further Preventing and Handling the Risks of Virtual Currency Trading Speculation”). In our country’s judicial activities, the effectiveness of all judicial interpretations is lower than that of laws. Judicial interpretations belong to interpretations and clarifications of laws, but they are made by the Supreme People’s Court and the Supreme People’s Procuratorate with the power to interpret, and can directly guide judicial organs in their judicial activities. In addition, policy documents related to a certain industry (especially those formulated by the Supreme Court, the Supreme Procuratorate, the Ministry of Public Security, etc.), criminal policy documents, etc., will also affect actual judicial activities, such as the various policy regulations on virtual currency stipulated in the “9.24 Notice”. However, whether it is a judicial interpretation or a policy document, its level of effectiveness is lower than that of laws. If the law does not make any provisions, judicial interpretations cannot make any provisions “beyond the scope” (such as framework policy regulations concerning virtual currency); regulatory documents are not strictly legal documents, and they cannot directly determine or determine the legal nature of a certain field (such as the field of virtual currency). Therefore, some courts directly cite the provisions of the “9.24 Notice” for civil and commercial and criminal trials at best, which can be said to be “adjudicating in accordance with the rules” rather than “adjudicating in accordance with the law”.
II. The attitude of Mainland China towards virtual currency trading at present
Is virtual currency trading still allowed in Mainland China at present? Lawyer Liu can give everyone a definite answer: virtual currency trading is still not prohibited in Mainland China at present, but the investment and trading activities of virtual currency in Mainland China are also not protected by law (strictly speaking, they are not protected by civil law when they violate public order and good customs, in practice, some people use virtual currency trading for fraud, theft, illegal business operations, pyramid schemes, or establishment of gambling crimes, and even more common crimes such as helping, concealing, and harboring criminals still need to be regulated by law). As for the fact that some judicial interpretations now mention terms such as “virtual currency” and “virtual assets”, it is mainly because there are more and more activities of using virtual currency for money laundering, illegal fund-raising, illegal business operations, which have attracted the attention of the Supreme Court and the Supreme Procuratorate.
III. Can virtual currency still be bought and sold in Mainland China in the future?
As mentioned above, the “9.24 Notice” is still the most authoritative document in China’s mainland defining the nature of virtual currency and its trading activities. Lawyer Liu suggests that friends in the coin circle (whether legal professionals or not) should familiarize themselves with it and strive for a thorough understanding. Of course, for friends who don’t have the energy, you can directly contact Lawyer Liu (let me advertise myself). As long as the “9.24 Notice” is not repealed or modified, virtual currency trading can still be conducted in Mainland China.
However, with the increasing attention of judicial organs to virtual currency, the responsibility of players in the coin circle will also become heavier. Whether it is withdrawing or depositing funds, it is increasingly important to conduct KYC (Know Your Customer) and AML (Anti-Money Laundering) reviews. In simple terms, do not use virtual currency for illegal activities, and do not accept dirty money (especially in the case of large amounts of funds being withdrawn or deposited).
IV. Conclusion
In reality, some friends may say, “How can I guarantee that the money given to me by the other party is 100% clean? I am not a bank, how can I conduct anti-money laundering checks?” For friends with this mindset, the straightforward Lawyer Liu has only one suggestion: don’t get involved in the coin circle, after all, no one is forcing you to come in, right? The gentle and kind-hearted Lawyer Liu may suggest: for players who just want to experience it as a hobby, it’s okay to play a little; for players who want to make a fortune or turn their lives around, they must have their own legal advisor and at least pay attention to Lawyer Liu, so as to keep up with the latest legal knowledge in the coin circle.
