Is it legal for domestic companies to buy and sell Bitcoin?

According to the "924 Notice" issued by relevant Chinese departments, domestic Bitcoin transactions are completely prohibited, including Bitcoin transactions conducted by enterprises. Domestic companies buying and selling Bitcoin face administrative penalties, criminal penalties, financial risks, operational risks and reputation risks. Therefore, it is recommended that domestic enterprises participate in Bitcoin transactions with caution to avoid legal risks and operational risks.

# It is illegal for domestic enterprises to buy and sell Bitcoin.

According to the "Notice on Further Preventing and Handling the Risks of Speculation in Virtual Currency Transactions" (hereinafter referred to as the "924 Notice") issued by the People's Bank of China and other ten departments, no organization or individual is allowed to issue securities within the territory of China , sell and buy virtual currencies.

The issuance of the "924 Notice" means that Bitcoin transactions in China are completely prohibited, including Bitcoin transactions conducted by enterprises.

Therefore, domestic companies buying and selling Bitcoin will face the following legal risks:

• Administrative penalties: Companies may be fined, confiscate illegal gains and other administrative penalties .

• Criminal punishment: In serious cases, the person in charge of the company may also be held criminally responsible.

In addition, enterprises may also face the following risks when conducting Bitcoin transactions:

• Financial risks: Bitcoin prices fluctuate violently, and enterprises may suffer huge loss.

• Operational risks: Bitcoin transactions have technical risks, legal risks, etc., and companies may face operational risks.

• Reputational Risk: Businesses trading in Bitcoin may harm their reputation.

Therefore, it is recommended that domestic enterprises participate in Bitcoin transactions with caution to avoid legal and operational risks.

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