After the new regulations from 13 departments, is it illegal for individuals to hold and trade virtual currencies?

“It’s not illegal, play with confidence!”—You may have heard this countless times. But the truth is, if you’re holding Bitcoin or USDT, you’re standing in a gray area: the law doesn’t prohibit it, but it may not protect you either.

I. Personal Possession ≠ Absolute Safety
Yes, personally holding virtual currencies and peer-to-peer transactions currently do not constitute illegal activity. But you need to understand two things:
If you lose your coins, no one may care
Were your coins stolen, scammed, or hacked? The police may refuse to file a case on the grounds of “illegal transactions.” The courts may also refuse to accept your case—because virtual currency transactions are not protected by law.

Your risk begins the moment you cash out
The real red line is when you convert your coins into RMB.

II. Three Major Pitfalls in Cashing Out—Any One Can Be Fatal
🔴 First Pitfall: Disguised Foreign Exchange? Beware of “Illegal Business Operations”!
China implements foreign exchange controls, but virtual currency can be transferred globally in a minute.
⚠️ If you use RMB to buy stablecoins and then exchange them for US dollars overseas—this is already suspected of being disguised foreign exchange trading. If caught, the charge of illegal business operations may come out of nowhere.

🔴 Second Pitfall: Receiving Stolen Funds? Become an “Accomplice” Overnight!
Fraudsters love using virtual currency to launder money.
⚠️ When you sell coins and receive money, there’s a high chance you may be receiving illegally obtained funds. The next moment, the police may come knocking on your door with a charge of “concealing or disguising criminal proceeds”—how will you prove you didn’t know?

🔴 Third Pitfall: Knowingly Offending? Beware of “Operating a Gambling Den”!
If you know the buyer is using the coins for online gambling but still proceed with the transaction—
⚠️ Congratulations, you are now an accessory to operating a gambling den. The law won’t go easy on you just because you were “only selling coins.”

III. Self-Protection Guide: Guard Your Last Line of Defense
Remember this survival rule: you can play with coins, but cashing out must be done with extreme caution.
✅ Strictly verify the source of funds: Who is the other party? Where does the money come from?
✅ Keep complete transaction records: chat logs, transfer receipts—don’t miss a single one.
✅ Beware of high-price temptations: transactions far above market price are often traps involving stolen funds.
✅ Refuse suspicious parties: If the other party is evasive or the purpose is unclear, stop the transaction immediately.

In the world of virtual currencies, there is no black-and-white legal umbrella.
Every transfer you make could be a silent adventure.
On the flip side of “not illegal” is a legal cliff where the law won’t reach out.
While you are staring at your profits, risk is also staring at you.
Remember: in the gray zone, the only light comes from the lamp you light yourself.
Before cashing out, ask one more question, check one more step—that could be the last wall standing between you and prison. #十二月行情展望 #广场发帖领$50