Shanghai No. 2 Intermediate People's Court: Mere Personal Crypto Holding and Trading Generally Not Recognized as the Crime of Illegal Business Operation

Odaily News: A criminal trial seminar, guided by the Chinese Criminal Law Research Society and the Shanghai High People's Court, and jointly organized by the Shanghai No. 2 Intermediate People's Court and the Renmin University of China Law School, focused on the theme of "Unifying the Application of Law in Cases Involving Virtual Currency Crimes." The key discussion points are summarized as follows:

Regarding the determination of "subjective knowledge" in virtual currency-related money laundering crimes, a comprehensive judgment should be made to prevent objective incrimination.

Concerning the identification of behavioral types and the standard for consummation in virtual currency-related money laundering crimes: First, accurately grasp the criminal essence of "concealing or disguising the source and nature of criminal proceeds and their gains." Second, the act of concealing or disguising criminal proceeds and their gains, as stipulated by the constitutive elements of the money laundering crime, constitutes a consummated offense. Third, crack down on money laundering crimes strictly according to law to resolutely safeguard national financial security.

Regarding the determination of virtual currency-related illegal business operation crimes: If the conduct lacks the characteristics of a business operation and merely involves personal holding or trading of virtual currency, it is generally not recognized as the crime of illegal business operation. However, if the actor, knowing that others are illegally buying or selling foreign exchange or engaging in disguised foreign exchange transactions, still provides assistance by exchanging virtual currency, and the circumstances are serious, it should be recognized as an accomplice to the crime of illegal business operation.