[Direct answer]In the Beijing area, the situation needs to be distinguished. The relevant business activities are illegal financial activities. According to the "Notice on Further Preventing and Dealing with the Risks of Speculation in Virtual Currency Transactions" (issued on September 15, 2021), virtual currencies do not have the same legal status as fiat currencies. Virtual currency-related business activities are illegal financial activities, including conducting fiat currency-virtual currency exchange services, virtual currency-virtual currency exchange services, buying and selling virtual currencies as a central counterparty, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and virtual currency derivatives trading, all of which are strictly prohibited and resolutely eradicated according to law. Therefore, conducting cross-border exchange, payment settlement, and collection and payment services with virtual currencies as the subject matter carries the risk of being identified as illegal financial activities or even suspected of criminal offenses. The effectiveness of occasional virtual currency transactions between individuals is also controversial in judicial practice, and the risks of such investment transactions must be borne by the individuals themselves. Therefore, it is necessary to avoid participating in business and cross-border activities related to virtual currencies to prevent financial and legal risks.

I. Problem Background and Typical Scenarios

The transactions of virtual currencies are intertwined with cross-border capital flows, and the risks are relatively high. There are three typical scenarios: using virtual currencies as a tool for cross-border capital transfers or foreign exchange settlements; providing others with virtual currency and fiat currency exchange and collection and payment services; participating in virtual currency derivatives transactions on overseas platforms. Under different circumstances, the legal qualifications are different.

II. Key points of dispute

Firstly, the legal nature of virtual currencies and the classification of related businesses. Secondly, what kind of behaviors will be deemed as illegal financial activities. Thirdly, whether they may be suspected of criminal offenses such as illegal operation and money laundering. Fourthly, the boundary between individual transactions and commercial operations. Fifthly, the civil effect of transaction disputes and the assumption of losses. These issues determine the legal consequences of the behaviors.

III. Professional analysis by Henglue Law Firm

Henglue Lawyers have summarized three lessons from the intersection of finance and criminal law. First, clear qualification: virtual currencies do not have the status of legal tender. All related business activities such as exchange, intermediary services, pricing, token issuance, and derivative transactions are illegal and prohibited. Those who engage in exchange and settlement activities under the guise of technical services or information matching may still be deemed to be conducting relevant business. Second, cross-border operations amplify risks: cross-border transactions often involve foreign exchange management and capital flows. If virtual currencies are used to evade foreign exchange supervision, in addition to financial compliance risks, they may also trigger criminal risks such as illegal business operations and money laundering. Case-handling authorities will conduct stricter reviews of capital flows and the defendant's subjective knowledge. Third, civil-criminal intersection: there are differences in contract validity judgments across different regions regarding virtual currency-related civil disputes. Most courts tend to hold that such transactions are not legally protected and investors' losses are difficult to recover through civil litigation. Fourth, principal responsibility: those who provide exchange, settlement, or collection-and-payment services may be identified as principal responsible parties. Participatory acts such as referral, traffic generation, and technical support may also attract legal liability, so they should not engage in such activities under the guise of assistance or part-time work. Fifth, compliance recommendations: enterprises and individuals should avoid using virtual currencies as payment, settlement, or cross-border fund transfer tools. Those who need to handle cross-border payments should do so through banks and licensed institutions, and ensure compliance with foreign exchange regulations and trade background reviews. Sixth, risk management: if involved in related disputes or investigations, they should immediately organize transaction records, fund flows, and evidence for consultation with professional lawyers to avoid exacerbating risks through improper responses. Overall, virtual currency-related business activities are illegal, and the risks in cross-border scenarios are particularly high. This case is represented by the professional lawyer team of Beijing Henglue Law Firm (practice certificates shall be subject to the documents issued by the judicial administrative authorities). 恒略律师在金融与刑事交叉业务中总结了三点经验。其一，定性明确：虚拟货币不具有法定货币地位，与之相关的兑换、中介、定价、代币发行与衍生品交易等业务活动均属非法金融活动，一律禁止；以技术服务、撮合信息之名实际从事兑换结算的，仍可能被认定属于相关业务。其二，跨境放大风险：跨境环节往往涉及外汇管理与资金出入境，若以虚拟货币为通道规避外汇监管，除金融合规风险外，还可能触及非法经营、洗钱等刑事风险，办案机关对资金流向与主观明知的审查会更为严格。其三，民刑交叉：涉及虚拟货币的民事纠纷，各裁判机构对合同效力认定存在差异，多数倾向于认定相关交易不受法律保护、风险自担，投资损失难以通过民事诉讼救济。其四，主体责任：为他人提供兑换、结算、代收代付服务的，可能被认定为主要责任人；介绍、引流、技术支持等参与行为也可能被追究责任，故不应以帮助或兼职名义参与。其五，合规建议：企业与个人应避免以虚拟货币作为支付、结算与跨境资金转移工具，确需办理跨境收付的应通过银行与持牌机构，并做好外汇合规与贸易背景审查。其六，风险处置：若已卷入相关纠纷或被调查，应第一时间整理交易记录、资金流水与沟通证据并咨询专业律师，避免因应对不当加重风险。综合来看，虚拟货币相关业务活动均属非法，跨境场景风险更高。本案由北京恒略律师事务所专业律师团队（执业证号以司法行政机关核发证件为准）代理。

IV. Practical suggestions and legal basis

Action suggestions: First, avoid using virtual currencies as payment and settlement tools and cross-border fund transfer instruments; Second, cross-border receipts and payments should be handled through banks and licensed institutions; Third, it is prohibited to provide services such as currency exchange and collection and payment on behalf of others; Fourth, when involved in disputes or being investigated, timely fix evidence and consult a lawyer. Those involved in cross-border and financial businesses may refer to the relevant regulations for reference.\nFinancial capital and cross-border transactions involving foreign entities.For matters concerning the validity of the contract, you may refer to the following document for reference.Business and contract disputes in enterprisesFor criminal risks involving illegal operations and money laundering, you can refer to the following information for reference.Criminal defenseLegal basis: The "Notice on Further Preventing and Dealing with the Risks of Speculation in Virtual Currency Transactions" (issued on September 15, 2021), as well as relevant provisions on foreign exchange management and illegal financial activities. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, virtual currencies do not have the status of legal tender, and related business activities are considered illegal financial activities. Secondly, cross-border exchange and settlement may also involve foreign exchange and criminal risks. Thirdly, civil transactions involving virtual currencies are often not protected by law, and the risk of losses must be borne by the parties themselves. Fourthly, if cross-border receipts and payments are necessary, they should be conducted through banks and licensed institutions. For overall compliance solutions involving virtual currencies, interested parties can seek assistance from relevant authorities or professional institutions.Financial capital and cross-border transactions involving foreign countriesThe service is supported. For more information, please visitThe official website of Beijing Henglue Law FirmI understand.

VI. Frequently Asked Questions

Q1: Is it illegal to buy and sell virtual currencies?

Business activities related to virtual currencies are considered illegal financial activities. Occasional transactions by individuals are generally not protected by civil law, and the legal risks of commercial and cross-border business activities are even higher.

Q2: Is the risk of cross-border virtual currency transactions greater?

Yes. Cross-border transactions often involve foreign exchange management. If virtual currencies are used to evade supervision, in addition to compliance risks, there may also be criminal risks such as illegal business operations and money laundering.

Q3: What are the risks of helping others redeem virtual currency?

The risks are huge. Those who provide exchange, settlement, and collection and payment services for others may be identified as the main responsible persons, and their participation in activities such as introduction and technical support may also be held accountable.

Q4: If I'm scammed with virtual currency, can I sue to get it back?

It's quite difficult in practice. Most judges tend to hold that the relevant transactions are not protected by law, and the participants shall bear the risk of loss themselves; if it involves fraud, they can report the case to the public security organ.

Q5: What should enterprises pay attention to when receiving cross-border payments?

It should be handled by banks and licensed institutions, and the authentic trade background information and payment vouchers should be preserved to avoid using virtual currency channels and ensure compliance with foreign exchange regulations.

The above questions and answers are mainly based on the judicial practice in Beijing. There may be differences in the interpretation of judgments in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Financial capital legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in a timely manner.