Legal analysis: belong to. Illegal arbitrage refers to the behavior of domestic institutions or individuals to exchange RMB or materials for foreign exchange or foreign exchange income from the second or third party in various ways to obtain foreign exchange from China.

Legal basis: Article 4 of the Provisional Regulations on Foreign Exchange Control in People's Republic of China (PRC), except as otherwise provided by laws, decrees and these Regulations, all foreign exchange income of Chinese and foreign institutions or individuals must be sold to the Bank of China, and the required foreign exchange shall be sold by the Bank of China according to the plan approved by the state or relevant regulations.

People's Republic of China (PRC) prohibits the circulation, use and pledge of foreign currency, the unauthorized trading of foreign currency, arbitrage and evasion of foreign exchange in any form.