A Literature Review on the Legal Nature of Virtual Currencies in China

Abstract

With the development of blockchain technology, virtual currencies have become deeply embedded in economic life and criminal activities, making their legal status a prerequisite and fundamental issue for the application of law in cases involving virtual currencies. Domestic academia has engaged in intense debate on this topic, resulting in an academic landscape characterized by the coexistence of diverse viewpoints. Focusing on the core issue of the legal nature of virtual currency, research has found that, at the regulatory level in China, virtual currency is denied the status of legal tender; at the theoretical level, there is a fundamental divergence between the affirmative and negative views regarding the classification of virtual currency, with the affirmative view further subdivided into the property rights theory, the creditor’s rights theory, and the new property rights theory; judicial practice, meanwhile, oscillates between “property crimes” and “computer crimes,” with a prominent phenomenon of inconsistent rulings in similar cases. The literature indicates that the property value of virtual currency has been widely recognized, but its positioning within the existing legal framework remains fraught with tension. Future research should, while respecting regulatory policies, provide more definitive theoretical frameworks to ensure comprehensive protection of rights and interests related to virtual currency.