Don’t spend money on virtual currencies like Bitcoin or Tether; even if others try to get you to invest, don’t join in: these transactions receive no legal protection, so you won’t be able to recover any losses through court

China does not recognize virtual currencies as legal tender. Individual purchases of such coins can be ruled invalid by courts, meaning any losses fall on the buyer. One person paid roughly 448,000 yuan to buy Tether, but later couldn’t withdraw funds from the platform; his lawsuit was dismissed. Theft of crypto is a separate criminal matter — thieves are prosecuted for theft.

Cost

There’s no direct cost. You simply avoid buying these coins and steer clear of “signal groups” or “guaranteed‑profit” crypto communities. The trade‑off is that you won’t profit when crypto prices rise.

Benefit

In February 2026, eight Chinese authorities issued Notice No. 42 (Yinfa [2026] 42), stating that Bitcoin, Ethereum, Tether and similar virtual currencies “have no legal tender status and must not be used as currency in any market.” Converting RMB to crypto, trading one crypto for another, or using crypto for fundraising are all illegal financial activities, strictly prohibited. Foreign firms may not offer such services to Chinese residents. The notice also clarifies that any civil transaction involving virtual currencies or tokenized real‑world assets that runs counter to public order is void, with all resulting losses borne by the parties involved. This provision echoes wording from the 2021 Notice No. 237, which was also repealed. A court case illustrates this: between February 2018 and July 2019, Mr. Tang paid about 448,000 yuan to two alleged platform operators for Tether; after the platform became inaccessible he sued for repayment. The court ruled his investment contract invalid and dismissed his claim, a decision upheld on appeal (Yixing, Jiangsu, March 2025). Theft of crypto is a separate crime; for example, a hacker stole crypto worth over 4 million yuan from a victim, and the thief was sentenced to seven years in prison and fined 20,000 yuan (Zhengzhou, Henan).

Notes

The clause “losses borne by the investor” applies only to disputes between you and the seller or promoter; it does not entitle you to recover funds through litigation, so don’t count on a court win. If your crypto is stolen or scammed, treat it as a criminal case and report it to police. Existing holders should also guard against QR‑code theft; in Lianshui, Jiangsu, a man scanned a code during a meeting and lost roughly 57,000 Tether worth about 393,665 yuan; the People’s Court has ruled such acts should be prosecuted as theft. In 2022 the FBI warned of a similar tactic: a pop‑up window granting unlimited transfer rights to a wallet; the recommended safeguard is to avoid linking wallets to untrusted sites and to regularly audit permissions via third‑party tools. Using your own bank card to receive payments, buy crypto, or transfer funds for others can constitute a criminal offense — see Section 9, Item 5 (“part‑time work” involving personal cards). For “high‑return” investment offers, refer to Section 6 (“high yield”, “guaranteed profit” warnings). Legal ways to invest in overseas assets are outlined in Section 38 (QDII funds or Stock Connect). This information is not investment advice. 〔394000〕 〔393665.461434〕

Sources · 2

1. 中国人民银行、国家发展改革委、工业和信息化部、公安部、市场监管总局、金融监管总局、中国证监会、国家外汇局 (2026). 关于进一步防范和处置虚拟货币等相关风险的通知（银发〔2026〕42 号，第一、十九条）. csrc.gov.cn/csrc/c100028/c7614318/content.shtml（中国证监会发布）；宜兴市人民法院 (2025). 投资虚拟货币受损 风险责任自行承担. yx.wxfy.gov.cn/article/detail/2025/09/id/8970…
2. 【新时代检察好故事】偷了虚拟币 被判盗窃罪 (2024). yw.gov.cn/art/2024/2/2/art_1229143073_5947130…（义乌市人民政府网转载）；人民法院报 (2024). 非法窃取虚拟货币行为的刑法定性. sdcourt.gov.cn/jningzcfy/386500/386502/314415…（邹城市人民法院网转载）；Federal Bureau of Investigation (2022). Scammers Target and Exploit Owners of Cryptocurrencies in Liquidity Mining Scam (Alert Number I-072122-PSA). ic3.gov/PSA/2022/PSA220721