TechFlow reports that on November 18, the Shanghai High People's Court released an article explaining a court case involving a dispute over virtual currency issuance and financing service contracts. The court clarified that virtual currencies, as virtual commodities, possess property value, and mere individual holding of virtual currencies is not illegal.
In the specific case, in 2017, an agricultural development company (Company X), optimistic about the development of virtual currencies, signed a "Blockchain Incubation Agreement" with an investment management company (Company S) and paid a service fee of 300,000 yuan for token issuance. The Songjiang District People's Court ultimately ruled the agreement invalid and ordered Company S to refund 250,000 yuan.
The court stated that token issuance and financing are essentially unauthorized illegal public fundraising activities, suspected of multiple violations and criminal acts. The involved "Blockchain Incubation Agreement" was deemed invalid due to violation of financial regulatory provisions. The court emphasized that while individuals may hold virtual currencies, commercial entities must not arbitrarily participate in virtual currency investment transactions or issue tokens independently.
