Judicial disposal of Virtual Money: Is it necessary to issue a legal opinion?

With the rapid development of the virtual currency market, its compliance issues in the field of judicial disposal have attracted increasing attention. As one of the few teams in China that specializes in the compliance of the judicial disposal of virtual currency, we deeply feel that the judicial authorities are paying more and more attention to the compliance of the disposal. In practice, more and more judicial authorities have explicitly required the disposal company to entrust a law firm to issue a legal opinion in the bidding process (and some also require the law firm in the overseas disposal place to also issue a legal opinion) to ensure the legality and standardization of the disposal process. This trend not only reflects the high standard requirements of the judiciary for the compliance of virtual currency disposal, but also highlights the important role of legal opinions in the judicial disposal of virtual currency. In this article, Mr. Liu (web3_lawyer) will discuss the necessity, content, work of lawyers, and the significance of compliance in legal opinions.

1. What is the purpose of a legal opinion?

In the judicial disposal of Virtual Money, the legal opinion letter, as a professional legal evaluation document issued by an independent third-party institution - law firm, has important functions and value.

First, the legal attributes of Virtual Money are complex, involving multiple legal issues such as financial regulation, valuation of the property involved, foreign exchange management, tax Compliance, and cross-border transactions. The involvement of law firms can provide professional legal guidance to judicial authorities and disposal companies, ensuring that the disposal actions comply with current laws and regulations.

Secondly, the legal opinion letter can effectively reduce legal risks in judicial disposal by assessing the Compliance of the disposal model, preventing administrative penalties or civil disputes, and even criminal legal risks arising from improper operations;

Finally, the legal opinion letter, as an objective and neutral assessment document, helps to enhance the trust of judicial authorities in the disposal of the company and increases the competitiveness of bidding.

In summary, the involvement of law firms as independent third-party institutions not only provides professional assurance for judicial disposal but also offers relevant parties a clear compliance path in a complex legal environment.

2. Main Content of the Legal Opinion

The legal opinion on the judicial disposal of virtual money usually includes the following core content to ensure the comprehensiveness and authority of the assessment:

Project Introduction: A brief overview of the background of the disposal project, the types, quantities, and sources of the Virtual Money involved (such as assets confiscated from criminal cases), laying the foundation for subsequent analysis.

Domestic regulatory provisions on virtual currency: Sorting out the regulatory requirements of China's current laws and regulations on the qualitative, trading and disposal of virtual currency, in addition to the well-known "9.4 Announcement" and "9.24 Notice" in the currency circle, we will summarize and analyze all laws and regulations, departmental rules, regulatory documents, industry norms, etc. related to judicial disposal, and design a legal framework for compliance with the disposal project.

Disposal Company Disposal Model Assessment: A detailed analysis of the disposal company's disposal plan, including the storage, monetization, and fund circulation of virtual money, assessing whether it complies with regulatory requirements and whether there are any legal risks.

Conclusion on Compliance: Based on the above analysis, clarify whether the disposal model is legal and compliant, and provide improvement suggestions or risk warnings to serve as decision-making basis for judicial authorities and disposal companies.

Through the above content, the legal opinion letter provides a systematic and professional Compliance assessment framework for judicial disposal.

What work should lawyers undertake?

To issue high-quality legal opinions, lawyers need to conduct in-depth research and studies in the area of Virtual Money judicial disposal business, mainly including the following aspects:

On-site investigation of the disposal company: Lawyers need to go to the disposal company to understand its operating model, technical means, and internal management processes, and to verify the compliance of the disposal process.

Investigation of overseas disposal platforms: Since the disposal of virtual money often involves cross-border transactions, lawyers need to research the compliance of overseas joint disposal entities and trading platforms, and assess whether they meet international Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) requirements.

Communicating and Reporting to Judicial Authorities: Lawyers need to report project progress to the judicial authorities with disposal needs, answer their questions about Compliance, and ensure that the disposal plan is consistent with judicial requirements.

Legal Research and Analysis: Lawyers need to conduct in-depth research on domestic and international laws and regulations, regulatory policies, and judicial practices related to Virtual Money, and perform legal applicability analysis based on specific project circumstances.

Through the above work, the lawyer can comprehensively grasp the project situation, providing a solid factual and legal basis for issuing the legal opinion letter.

IV. Conclusion

The Compliance of the judicial disposal of Virtual Money is not only a legal requirement but also an important guarantee for maintaining judicial credibility and preventing financial risks. However, due to the complexity of Virtual Money and the dynamic changes in the regulatory environment, the compliance work of judicial disposal has a high level of technical difficulty and legal risk.

From the practical experience of Lawyer Liu's team, legal opinions serve as an important tool for Compliance assessment. They not only provide professional legal support to judicial authorities and disposal companies but also enhance the credibility of disposal plans in bidding processes and other stages. In this process, law firms play an indispensable role in judicial disposal business due to their professional capabilities and independence. We believe that in the future, as the regulatory policies for Virtual Money are further improved, the participation of legal opinions and lawyers will play an even more important role in promoting the Compliance and standardization of judicial disposal.

Finally, we sincerely welcome more exchanges and cooperation with our peers, and work together to make China's judicial disposal business compliant, safe and transparent.