A Substance-over-Form Approach to Virtual Currency in Criminal Law
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A Substance-over-Form Approach to Virtual Currency in Criminal Law

Zhengqian Shan 1*
1 Jinan University
*Corresponding author: anzhengsai@gmail.com
Published on 19 November 2025
Volume Cover
LNEP Vol.119
ISSN (Print): 2753-7056
ISSN (Online): 2753-7048
ISBN (Print): 978-1-80590-545-5
ISBN (Online): 978-1-80590-546-2
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Abstract

As a kind of complex object with property attribute and financial attribute, virtual currency has caused theoretical and practical controversies about its criminal law classification since its birth. In judicial practice, because of the vague boundary between property crime and financial crime, the criminal case of virtual currency always manifests a state of “malnutrition”: denying its property attribute, resulting in the attenuate protective function of criminal law; generalize its financial attribute, resulting in the criminal law overregulation. This paper insists on establishing a dual regulation model based on property attribute and financial attribute. In the field of property crime, virtual currency’s property value should be acknowledged and regulated according to the traditional property crime such as theft, fraud, and embezzlement. In the field of financial crime, the criminal law should only focus on the behaviors of illegal fund raising and money laundering, considering the anonymity, decentralization and cross-border circulation of virtual currency. More importantly, the criminal law evaluations should follow the principle of “substance over form” to find out the real function of virtual currency in the criminal behavior, thereby protecting property rights, maintaining financial order and promoting the systemic regulation and substantive regulation of virtual currency crime.

Keywords:

Property Crimes, Financial Crimes, Virtual Currency, Dual Regulation, Substance Over Form

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Shan,Z. (2025). A Substance-over-Form Approach to Virtual Currency in Criminal Law. Lecture Notes in Education Psychology and Public Media,119,17-26.

References

[1]. Ma, Y. (2022). On the Criminal Law Characterization of Blockchain Cryptocurrency. Journal of Soochow University (Law Edition), (2).

[2]. Chen, X. (2017). The Criminal Law Attribute of Virtual Property and Its Protection Path. China Legal Science, (2).

[3]. Zhang, M. (2015). The Nature of Acts Involving the Illegal Acquisition of Virtual Property. Law Science, (3).

[4]. Chen, L. (2021). The Criminal Law Significance of Virtual Property. Law Science, (11).

[5]. Li, J., & Cai, D. (2023). A Systematic Thinking on the Protection of Virtual Property from the Perspective of the "Divide-into-Two" Method. Seeking Truth, (3).

[6]. Zhang, Q. (2021). On the Criminal Law Regulation of Digital Currency. Legal Research, (6).

[7]. Pan, W. (2023). The Operation Mechanism and Legal Governance of Digital Currency. Tsinghua Law Journal, (3).

[8]. Ke, D. (2024). "Prohibitive" Regulation of Virtual Currency: Jurisprudential Reflection and Institutional Optimization. Journal of the East China University of Political Science and Law, (3).

[9]. Huang, J., & Zhou, W. (2022). Research on the Criminal Characterization of Cryptocurrency-Related Behaviors. Journal of Institutional Economics Research, (1).

[10]. Wang, F. (2011). A Brief Introduction to the Substance Over Form Principle. Finance and Accounting Research, (11).

References

[1]. Ma, Y. (2022). On the Criminal Law Characterization of Blockchain Cryptocurrency. Journal of Soochow University (Law Edition), (2).

[2]. Chen, X. (2017). The Criminal Law Attribute of Virtual Property and Its Protection Path. China Legal Science, (2).

[3]. Zhang, M. (2015). The Nature of Acts Involving the Illegal Acquisition of Virtual Property. Law Science, (3).

[4]. Chen, L. (2021). The Criminal Law Significance of Virtual Property. Law Science, (11).

[5]. Li, J., & Cai, D. (2023). A Systematic Thinking on the Protection of Virtual Property from the Perspective of the "Divide-into-Two" Method. Seeking Truth, (3).

[6]. Zhang, Q. (2021). On the Criminal Law Regulation of Digital Currency. Legal Research, (6).

[7]. Pan, W. (2023). The Operation Mechanism and Legal Governance of Digital Currency. Tsinghua Law Journal, (3).

[8]. Ke, D. (2024). "Prohibitive" Regulation of Virtual Currency: Jurisprudential Reflection and Institutional Optimization. Journal of the East China University of Political Science and Law, (3).

[9]. Huang, J., & Zhou, W. (2022). Research on the Criminal Characterization of Cryptocurrency-Related Behaviors. Journal of Institutional Economics Research, (1).

[10]. Wang, F. (2011). A Brief Introduction to the Substance Over Form Principle. Finance and Accounting Research, (11).

Cite this article

Shan,Z. (2025). A Substance-over-Form Approach to Virtual Currency in Criminal Law. Lecture Notes in Education Psychology and Public Media,119,17-26.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICILLP 2025 Symposium: Property Law and Blockchain Applications in International Law and Legal Policy

ISBN: 978-1-80590-545-5(Print) / 978-1-80590-546-2(Online)
Editor: Renuka Thakore
Conference website: https://2025.icillp.org/London.html
Conference date: 19 November 2025
Series: Lecture Notes in Education Psychology and Public Media
Volume number: Vol.119
ISSN: 2753-7048(Print) / 2753-7056(Online)

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