Do not buy cryptocurrencies such as Bitcoin or Tether, or join others’ investment schemes: trades lack legal protection, and suing will not recover investment losses

No expense. Do not buy coins or join crypto groups offering trade signals or “guaranteed profits.” The cost is missing gains when coin prices rise.

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 This provision echoes wording from the 2021 Notice No. 237, which was also repealed.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).

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）. https://www.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. https://yx.wxfy.gov.cn/article/detail/2025/09/id/8970543.shtml；【新时代检察好故事】偷了虚拟币 被判盗窃罪 (2024). https://www.yw.gov.cn/art/2024/2/2/art_1229143073_59471301.html（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. http://www.sdcourt.gov.cn/jningzcfy/386500/386502/31441533/index.html（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). https://www.ic3.gov/PSA/2022/PSA220721

The rule that you bear your own losses concerns monetary disputes between you and the person selling coins or directing your trades. The court will not help recover the investment, so do not count on suing afterward. Theft or fraud is a criminal matter; report it to the police. Existing coin holders also need to guard against QR-code theft. In Lianshui, Jiangsu, someone scanned a code while meeting another person and lost about 57000 Tether from their wallet. They were worth about 394000 yuan, precisely 393665.461434 yuan. An article in People’s Court Daily argued that the conduct should be treated as theft. In 2022 the US FBI warned of a similar method: a wallet displays a list of permissions, and agreeing lets the other party transfer your coins without any amount limit. Its precautions are not to connect a wallet to websites you are unsure about, and regularly to use third-party approval-checking tools to see which websites have permission to transfer coins. Using your own bank card to receive money, buy coins or transfer coins for others is a separate matter that can bring criminal penalties; see Section 9, item 5 (a part-time job asks you to receive money through your own card). To recognize investment offers promising high returns, see item 6 (walk away from high returns, capital guarantees and certain profits). For lawful routes to overseas assets, see item 38 (buying US shares through QDII funds or Stock Connect). This is not investment advice.