Sa Xiao – the member of the Association of Law Studies of the National Bank of China – claimed that citizens are not prohibited to own bitcoins and exchange them among each other.
“In China people can legally own bitcoins and periodically exchange them among private individuals” – Xiao stressed.
However, if a company provides bitcoin trading services, and, as a result, clients lose significant amount of money, so this may become a reason for trial. Xiao has also noted, that against organizers of such a company may be brought a criminal case under the article 225.4 “Other illegal business that seriously violates the order on the market”.
The member of National Bank of China made this announcement against the background of the fact that 100 people lost their money in a fraudulent scheme. After the firm`s organizers received the last big transaction, they disappeared and investors lost more than 7000 BTC – BitcoinDoubler got to know.
The statements of Xiao are done on the basis of current laws, protecting people`s rights on virtual property, including Bitcoin. Exchange cryptocurrencies among private individuals is the inherent right while owning digital assets.