Can I Set Up a Visual Currency Trading Company in China?

This week, I received a consultation from a UK client Jason. His team intends to set up a visual currency trading company that will target Chinese customers. He talked about the business model and wanted to know if it is feasible and complies with Chinese laws. 

As we know, in many countries, conducting visual currency trading is legal as long as acquiring a business license, which is a new trading model in recent years. However, in China, it is not the same. That is why Jason initiated a legal consultation with us to ensure his business is safe in China. 

However, in mainland China, according to the current laws and regulations, conducting visual currency trading is illegal. One of the most important regulations is the “Notice on Further Preventing and Resolving the Risks of Virtual Currency Trading and Speculation“, which is the newest legal provision on China virtual currency trading up to date. Based on this, I have to emphasize here that all of the forms of business activities related to virtual currency trading are illegal now in China. That is to say, China law prohibits any virtual currency trading activities without any exception. 

However, if the business entity is set up outside China, is it also illegal? According to the Notice above, it will be illegal if the company targets Chinese customers, which means any company conducting virtual currency trading will not be protected and will probably face severe legal liabilities.

Furthermore, any persons who live in China investing in virtual currency trading, will also not be protected by China laws in any civil activities. More seriously, they probably will be held criminal responsibility if they are deemed as a helper by law.

Note: All of the articles come from my real legal practice.

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Contact us:

Jack Meng, is a Chinese lawyer practicing in Shanghai.

Email: finlandlove@outlook.com

Telegram: @Jackmeng2024