Legislation for Virtual Money! 2025 Central Political and Legal Work Conference: the Ministry of Justice should study issues such as Virtual Money

On January 14, 2025, the official account of the Central Political and Legal Affairs Commission stated that the Central Political and Legal Affairs Work Conference in 2025 clearly proposed to conduct legislative research on emerging areas such as autonomous driving, low-altitude economy, artificial intelligence, Virtual Money, and data ownership. Upon hearing this news, the cryptocurrency community was immediately stirred up. Some applauded, some worried, and some silently liquidated and fled.
So, what kind of changes will this Virtual Money legislative research bring to the currency circle? What impact will it have on ordinary investors, platform operators, and the entire market? Let's dig deeper today.
Why does Virtual Money need legislation?
Virtual Money has been seen as a technological miracle, but in recent years its performance has been like a runaway horse: it has a halo, but also serious problems. Why does the Virtual Money field need to prioritize entering the legislative track? In the final analysis, there are several reasons:
Regulatory challenges: The anonymity and cross-border transaction characteristics of Virtual Money make it difficult for regulatory authorities to track and combat related criminal activities, such as money laundering, tax evasion, and fraud‌.
Unclear Legal Status: Although Virtual Money is defined as a special internet commodity in China, there is no specific legislation to clarify its legal status and regulate its use. This has led to significant disputes over the application of law in criminal cases involving Virtual Money.
Market Chaos: Without clear laws and regulations, there are a large number of illegal transactions and fraudulent activities in the market, seriously disrupting market order.
Financial Risk: Virtual Money has high volatility and can easily lead to financial risks, requiring laws to regulate its use and trading behavior.
What profound impact will the Legislative Council have on the currency circle?
Market Volatility and Investor Confidence: The Virtual Money market is highly volatile, and legislative activities often trigger strong reactions in the market. For example, when legislative bodies discuss and formulate the legality and regulatory framework of Virtual Money, investors may feel uncertain, leading to short-term market fluctuations. This uncertainty may affect investor confidence and decision-making, thereby impacting the overall performance of the market.
Compliance requirements of trading platforms: With the strengthening of regulatory efforts, Virtual Money trading platforms need to meet more compliance requirements. This includes provisions regarding user identity verification, fund security, anti-money laundering measures, and so on. Trading platforms need to invest more resources and time to adjust and optimize their own business models to meet regulatory requirements. This may increase the platform's operating costs and may affect its service quality and user experience.
Investor protection: Legislative activities are usually aimed at protecting the rights and interests of investors, preventing fraud and illegal activities. For example, measures such as clarifying the legal status of Virtual Money, regulating trading behavior, and establishing investor protection mechanisms can effectively reduce investment risks and enhance investor confidence. However, overly strict regulation may also limit the innovation and development of Virtual Money, and it is necessary to find a balance between protecting investors and maintaining market vitality.
‌The dual impact of legislative activities on technological innovation and industry development: On the one hand, strict regulation can reduce market chaos and promote healthy development; on the other hand, overly strict regulation may inhibit innovation and limit the emergence of new technologies and applications. Therefore, how to encourage technological innovation and industry development while protecting investors and maintaining market order is a question that legislators need to balance‌.
What should ordinary people pay attention to?
• Be cautious when investing in a hot market
The advancement of legislative research may bring uncertainty to the cryptocurrency circle in the short term. Be particularly cautious of opaque platforms or projects that promise high returns, and do not hold any lucky mentality.
• Pay attention to policy trends
Before regulations are introduced, investors need to pay attention to the dynamics of policies, especially the specific regulatory requirements for exchanges and token issuances. If you are involved in certain Virtual Money investments, it is best to conduct a risk assessment in advance.
• Learn the technology, not just focus on the ups and downs
Instead of staring at the K-line chart every day, it's better to spend some time learning the practical application of blockchain technology. The speculative frenzy of Virtual Money will always pass, but the footsteps of technological revolution will not stop.
The advancement of legislation for Virtual Money means that the entire market will enter a phase of "survival of the fittest". Truly valuable projects will stay, while the bubbles driven by speculation will eventually burst. In the long run, this is a good thing. Only with the escort of the law can technological innovation sail towards a broader blue ocean.
So, in 2025, will it be the 'turn off the lights and eat noodles' year or the 'embrace the new year' in the cryptocurrency industry? It all depends on the formulation and implementation of laws, as well as whether market participants are willing to abide by the rule of law. Let us maintain rationality and anticipation, and witness the new chapter of this industry. Finally, remember this phrase: 'Technology changes the world, while the law safeguards the future.'
Note that the above content represents only the author's personal views.