Driven by the wave of digitalization, virtual currencies were born based on blockchain technology and gradually became digital tokens circulating in cyberspace. Some people have a dangerous illusion due to the technical characteristics of "decentralization" and "point-to-point transmission": as long as they do not use bank cards and instead use virtual currency to receive overseas funds, they can cut off the connection with personal identity, achieve true "anonymous transactions", and escape legal sanctions by virtue of its "untraceable" characteristics. But in fact, virtual currency is not illegal. Its so-called "anonymity" is just an appearance, and the risks it brings cannot be ignored.
Don’t underestimate the hidden dangers
Due to its characteristics such as concealed circulation and difficult supervision, virtual currency has become an important tool for criminals to engage in various illegal and criminal activities, creating multiple security risks.
——A "hotbed" for money laundering crimes. Illegal proceeds from telecommunications fraud, online gambling, cross-border smuggling, etc. are usually split and transferred with the help of virtual currencies, thereby circumventing financial supervision, completing the "laundering" and cross-border flow of stolen money, seriously disrupting the national foreign exchange management order, and endangering national economic and financial security.
——The "bunker" for cyber attacks. Cyber hackers and illegal attackers generally use virtual currencies to carry out criminal activities. After they launch ransomware attacks, network intrusions and other illegal activities, they often only accept virtual currency to pay ransom, and use the characteristics of their transactions to hide their identities and avoid tracing.
——The "accomplice" of spies stealing secrets. Overseas espionage and intelligence agencies promote the characteristics of virtual currency circulation, such as concealment and difficulty in verification, in order to dispel the concerns of those who are recruited to incite rebellion, and transfer espionage funds through virtual currency, posing a serious threat to our national secret security.
Anonymous transactions are an illusion
Criminals are hyping up the "anonymous transactions" and "untraceability" of virtual currency as a promotional gimmick. However, from a technical perspective, the blockchain itself has core features such as openness and transparency, and the data on the chain cannot be tampered with. The so-called "anonymity attribute" of virtual currency is fundamentally a false proposition. At the same time, the blockchain completely retains transaction records and other data, providing a basis for full-link traceability.
——Look at the ledger: traces are left throughout the transaction. Any virtual currency transaction, regardless of the amount, regardless of when and where it occurs, will be permanently and publicly recorded on the virtual currency's "public ledger". The distributed accounting characteristics of blockchain technology determine that once transaction information is uploaded to the chain, it cannot be deleted or tampered with. The address anonymity effect embodied by virtual currency only achieves the temporary isolation of the wallet address and the user's true identity, and is not identity concealment in the true sense.
——Check the link: It’s hard to hide your true identity. Although the wallet address is a string of garbled characters, the exchange between virtual currency and legal currency, and the exchange between virtual currencies, all need to go through the trading platform and payment interface, leaving traces such as device coding and network IP. Professional institutions can rely on on-chain data analysis and big data comparison and other technical means to trace the actual user behind the wallet address and restore the entire process of fund flow.
——On private keys: There is no guarantee of asset security. In the blockchain system, if the private key is kept by an individual, it is the only certificate to control the virtual currency, and there is no channel for reporting loss or retrieval. Once the private key is lost, leaked, or stolen, the holder will lose control of the virtual currency. If the private key is handed over to the trading platform for safekeeping, although the account password can be retrieved through appeal, you will need to bear the risk of platform closure and loss of contact.
Keep your eyes open and build a defensive line
Virtual currency not only carries the risk of property loss, but is also often used by overseas anti-China hostile forces and lawless elements to engage in various illegal and criminal activities that disrupt financial order and endanger national security. In this regard, we must recognize the essence, be vigilant, and take proactive precautions.
——Recognize the nature of illegal finance. In our country, virtual currency does not have the same legal status as legal currency, and any illegal financial activities involving virtual currency are not protected by law. In February 2026, the People's Bank of China and other departments issued a notice reiterating that virtual currencies such as Bitcoin, Ethereum, and Tether should not and cannot be used as currencies in the market; virtual currency-related business activities are illegal financial activities and are strictly prohibited and resolutely banned in accordance with the law.
——Be wary of the trap of high-paying part-time jobs. You should be highly vigilant about part-time jobs that promise high returns and flexible operations, especially tasks that require the use of virtual currency settlement, going to sensitive areas to take photos and collect information, and providing internal documents and data. They are most likely to be traps for overseas spy agencies. There is no free lunch in the world, and behind part-time jobs that pay far higher than the market salary is often an abyss of illegal crimes that endanger national security.
——Report promptly when finding clues. If you encounter situations where virtual currencies are used as bait to induce the provision of confidential and sensitive information or assist in the transfer of suspicious funds, etc., please promptly report through the 12339 national security agency reporting acceptance hotline, the online reporting acceptance platform (www.12339.gov.cn), the Ministry of National Security WeChat official account, or directly to the local national security agency.
