China Justice Observer


EnglishArabicChinese (Simplified)DutchFrenchGermanHindiItalianJapaneseKoreanPortugueseRussianSpanishSwedishHebrewIndonesianVietnameseThaiTurkishMalay

Chinese Court Says Virtual Currency Investing or Trading Not Protected by Law

Sat, 25 Sep 2021
Categories: China Legal Trends

On 23 Aug. 2021, Shandong High People's Court published  Ma v. Liu et al. (2021) on its official Wechat account, as a typical case on the application of the PRC Civil Code. The court confirmed that citizens' investment and trading in virtual currencies is against Chinese laws and is not protected by law.

Jinan Intermediate People’s Court, Shandong, the second-instance court, in this case, held that Velas Coin is a kind of virtual currency similar to bitcoin. Pursuant to the notice and announcement issued by the People’s Bank of China and other relevant authorities, virtual currencies are not issued by the authority issuing legal currency, and, therefore, are not legal tender and compulsory currency in nature, and cannot and should not be circulated and used as legal currency in the market. Citizens' investments and transactions of virtual currencies are in violation of relevant laws. In this case, Ma entrusted Liu, Chang, and Li to help him to register a Velas Coin account and purchase Velas Coins, which constituted a type of entrustment contract. In accordance with Article 8 of the Civil Code of the People's Republic of China, civil subjects shall not violate laws and public order, and good customs when engaging in civil activities. Although the contract is based on the true intention of all parties, the act of Ma entrusting Liu, Chang, and Li to help him buy Velas Coin is not protected by law in China, and such type of entrustment contract is not protected by law in China.



Cover Photo by billow926 ( on Unsplash

Contributors: CJO Staff Contributors Team

Save as PDF

Related laws on China Laws Portal

You might also like

SPC Publishes Typical Cases on Public Security Crimes

In April 2024, China's Supreme People's Court (SPC) released five typical cases illustrating crimes against public security, emphasizing clarifications on trial criteria and sentencing principles, featuring a case involving serious injuries from objects thrown off a high-rise building.

Beijing Court Upholds Workers' Right to Offline Rest

The Beijing No. 3 Intermediate People's Court ruled that workers are entitled to overtime pay for “invisible overtime work” conducted via social media outside of working hours, protecting their right to “offline rest”.

China Revises State Secrets Protection Law

China’s national legislature, the National People’s Congress, revised the State Secrets Protection Law to enhance information classification, secrecy in technological innovation, and precise protection of state secrets, effective May 1, 2024.