On November 20, the Shanghai Higher People's Court recently made it clear on a dispute over a virtual currency issuance financing service contract that virtual currency has property value as a commodity, and it is not illegal for individuals to simply hold it, but commercial entities shall not participate in virtual currency investment or token issuance without authorization. In the case, an agricultural development company (X company) entrusted an investment management company (S company) to assist in issuing tokens and paying 300,000 yuan service fee, but the tokens were not issued as scheduled. The court found that the essence of token issuance financing was illegal public financing, and the agreement violated financial regulations and was invalid. Company S was ordered to return 250,000 yuan. The court stressed that virtual currency-related businesses are vulnerable to suspected illegal securities sales, illegal fund-raising and other illegal acts, which disrupt financial order. Contracts involving virtual currencies that violate mandatory provisions of law will be found invalid, and relevant parties shall bear corresponding legal responsibilities. The court reminded enterprises and individuals to treat virtual currency-related businesses with caution and avoid legal risks.