There are always people around me urging me to "get into a certain new coin," confidently claiming that "it's about to be listed on major exchanges." Every time I hear this, I have to give them a proper "education"—the nature of participating in such activities domestically is far more complicated than they imagine.

After hearing these kinds of conversations multiple times, I realize that people's understanding really falls into two extremes: some think that dealing with virtual currencies will lead to ruin, while others simply don't take it seriously. In reality, the key issue isn't these perceptions at all, but whether you truly understand where the invisible legal boundaries lie.

**The rules and logic aren't that complicated**

The management approach to virtual currencies in China is very clear—it's defined as "virtual goods," not currency. In other words, holding a few bitcoins or Ethereum is equivalent to collecting an art piece, which is completely legal in itself. The turning point is when the purpose changes: if you want to run an exchange, act as a payment intermediary, or conduct an ICO to raise funds, you're crossing the line.

The 237th document jointly issued by the central bank and ten other departments in 2021 states very plainly—any business activities related to virtual currencies are considered illegal financial activities. Recently, seven industry associations reiterated: if you participate in such investments and lose money, don’t complain; you bear the consequences. In plain terms: the state allows you to be a collector, but strictly prohibits you from engaging in business.

**Is personal holding truly safe?**

The most common question I get is: "I just want to hold some virtual currency, will I run into problems?" Honestly, no. The Supreme Court has explicitly recognized virtual currencies as property protected by criminal law, acknowledging their asset nature. The assets you hold are your assets, and the law protects them. It’s no different from buying limited-edition sneakers—the item is in your hands, and your rights are safeguarded.