Is it legal to buy and sell Bitcoin domestically?

Bitcoin is illegal to buy and sell in China.

Bitcoin is illegal to buy and sell in China.

In September 2021, the People's Bank of China and ten other departments issued the "Notice on Further Preventing and Dealing with the Risks of Speculation in Virtual Currency Transactions" (hereinafter referred to as the "924 Notice"), which clearly stated:

• Virtual currency does not have the same legal status as legal tender.

• No organization or individual is allowed to issue, sell, or purchase virtual currency in China,

• Overseas virtual currency exchanges are not allowed to provide services to residents in China.

The notice also requires financial institutions and payment institutions not to provide account opening, transaction settlement, clearing and other services for virtual currency transactions.

The issuance of the “924 Notice” means that Bitcoin transactions in China are completely prohibited.

Despite this, there are still some over-the-counter Bitcoin transactions in China. However, this kind of transaction involves the following risks:

• Legal risk: Investors participating in OTC transactions may face legal penalties.

• Trading risks: OTC transactions lack supervision and investors are prone to fraud.

• Price risk: Bitcoin prices fluctuate violently, and investors may suffer significant losses.

Therefore, investors should be cautious when participating in Bitcoin transactions and be prepared to bear legal risks and transaction risks.

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