Shanghai High Court: Virtual currency has property value, and individuals holding virtual currency do not violate the law

ChainCatcher news, the Shanghai High People's Court published an article stating that the Songjiang District People's Court of Shanghai has concluded a dispute case regarding the validity of a virtual currency issuance financing service contract. The court believes that token issuance financing is an illegal public financing behavior, and the "Blockchain Incubation Agreement" involved in the case is invalid.

The article points out that virtual currency, as a type of virtual commodity, has property value and is not prohibited by law. Although there are no explicit regulations on virtual currency in Chinese law, regulations issued by the People's Bank of China and other departments have regulated activities related to virtual currency.

Therefore, although individuals holding virtual currency purely is not illegal, commercial entities cannot arbitrarily participate in virtual currency investment transactions or issue tokens on their own. Once they touch upon the bottom line of civil and criminal legal principles and rules in their trading activities, they may suffer losses or, in serious cases, be suspected of committing a crime.