Shanghai Second Intermediate People's Court: Holding and Trading Cryptocurrency as Individuals Generally Not Considered Illegal Business Operations

In light of recent developments, the Criminal Trial Seminar jointly organized by the China Criminal Law Society, the Shanghai High People's Court, and the China University of Political Science and Law focused on the legal unity theme of cases involving virtual currency crimes. The determination of subjective knowledge in money laundering crimes involving virtual currency should be comprehensively judged to prevent objective attribution. The identification of the behavior types and criteria for the completion of money laundering crimes involving virtual currency involves accurately grasping the essence of concealing and disguising the source and nature of criminal proceeds and their benefits. If the behavior does not exhibit characteristics of business operations and is limited to individual holding and trading of cryptocurrency, it is generally not considered an illegal business operation. However, if individuals knowingly assist others in illegal buying or selling of foreign exchange through exchanging virtual currency, it should be deemed as an accomplice to illegal business operations if the circumstances are severe.

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