With the rapid development of the virtual currency market, its compliance issues in the field of judicial disposal have received increasing attention. As one of the few teams in China that specializes in compliance with the judicial disposal of virtual currencies, we deeply feel that the judicial authorities are paying more and more attention to the compliance of disposal. In actual operations, more and more judicial authorities explicitly require the disposal company to entrust a law firm to issue a legal opinion during the bidding process (some also require the law firm in the overseas disposal location to issue a legal opinion at the same time) to ensure the legality and standardization of the disposal process. This trend not only reflects the high standards required by the judicial authorities for the compliance of virtual currency disposal, but also highlights the important role of legal opinions in the judicial disposal of virtual currencies. This article by Lawyer Liu (web3_lawyer) will discuss the necessity, content, lawyer work and compliance significance of legal opinions.

1. What is the use of a legal opinion?

In the judicial disposal of virtual currency, the legal opinion, as a professional legal assessment document issued by an independent third-party agency - a law firm, has important functions and value.

First, the legal attributes of virtual currency are complex, involving multiple legal issues such as financial supervision, identification of the value 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 organs and disposal companies to ensure that the disposal behavior complies with current laws and regulations;

Secondly, the legal opinion can effectively reduce the legal risks in judicial disposal by evaluating the compliance of the disposal model, and prevent administrative penalties, civil disputes or even criminal legal risks caused by improper operations;

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

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

II. Main contents of the legal opinion

Legal opinions on the judicial disposal of virtual currency usually contain the following core contents to ensure the comprehensiveness and authority of the assessment:

Project Introduction: A brief overview of the background of the disposal project, the types of virtual currencies involved, the amount and source (such as confiscated assets in criminal cases, etc.), laying the foundation for subsequent analysis.

Domestic regulatory provisions on virtual currencies: We will sort out the regulatory requirements of China's current laws and regulations on the characterization, trading and disposal of virtual currencies. In addition to the "9.4 Announcement" and "9.24 Notice" well-known to legal professionals in the currency circle, we will summarize and analyze all laws and regulations, departmental regulations, regulatory documents, industry norms, etc. related to judicial disposal, and design a compliant legal framework for disposal projects.

Evaluation of disposal model of disposal company: Detailed analysis of disposal plan of disposal company, including storage, realization and capital flow of virtual currency, to evaluate 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 put forward improvement suggestions or risk warnings to provide decision-making basis for judicial authorities and disposal companies.

Through the above content, the legal opinion can provide a systematic and professional compliance assessment framework for judicial disposal.

3. What work do lawyers need to carry out?

In order to issue high-quality legal opinions, lawyers need to conduct in-depth research and study in the judicial disposal of virtual currencies, mainly including the following aspects:

On-site inspection of the disposal company: The lawyer needs to visit the disposal company to understand its operating model, technical means and internal management process, and verify the standardization of the disposal process.

Investigation of overseas disposal platforms: Since the disposal of virtual currencies often involves cross-border transactions, lawyers need to investigate the compliance of overseas joint disposal entities and trading platforms, and assess whether they meet international anti-money laundering (AML) and counter-terrorist financing (CFT) requirements.

Communicate and report with judicial authorities: Lawyers need to report project progress to judicial authorities that have disposal needs, answer their questions about compliance, and ensure that disposal plans are consistent with judicial requirements.

Legal research and analysis: Lawyers need to conduct in-depth research on domestic and foreign virtual currency-related laws and regulations, regulatory policies and judicial practices, and conduct legal applicability analysis based on specific project circumstances.

Through the above work, lawyers can fully grasp the project situation and provide solid factual and legal basis for issuing legal opinions.

IV. Conclusion

The compliance of virtual currency judicial disposal business 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 currency and the dynamic changes in the regulatory environment, the compliance work of judicial disposal has high technical difficulty and legal risks.

Based on the practical experience of Liu's team, legal opinions, as an important tool for compliance assessment, not only provide professional legal support for judicial organs and disposal companies, but also enhance the credibility of disposal plans in bidding and other links. In this process, law firms play an indispensable role in judicial disposal business with their professional capabilities and independence. We believe that with the further improvement of virtual currency regulatory policies in the future, legal opinions and the participation of lawyers will play a 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 our country's judicial disposal business compliant, safe and transparent.