I believe that those who do referral rebates know that you can earn up to 40% rebate by inviting your friends to trade on a certain An or Yi platform. That is, if you invite new players, you can extract 40% of the handling fees generated by the new players during the transaction. Some people post on various social platforms or communities and send their own invitation codes. As long as you register through his invitation code, you will be pulled into the group, with single-coin trading point guidance and some so-called wealth codes and other benefits.
The bull market cycle continues to blow up, and only by attracting new customers can you make a profit without losing money. So, is it illegal to return commissions to large exchanges for attracting new customers? Let me explain it briefly! You are welcome to add to the discussion, and you are also welcome to share the process and results of such personal cases.
1. The commission return mechanism of the certain exchange is controlled such that the commission from your recruitment goes to you, and the person you invited will return the commission directly to them without returning to you. This controls the level of commission return, and generally, it will not be recognized as a tiered organization leading pyramid scheme crimes. In extreme cases, some places categorize exchanges as tier one, which would also involve pyramid scheme crimes. However, if you outsource your invitation code to others and return the data to them, it is akin to having someone specifically help you promote the QR code, and then what you share in terms of commission return to them becomes ambiguous.
2. Currently, the leverage on a certain exchange varies with different currencies; Bitcoin can be leveraged up to 125 times at most, while a few currencies are at 75 times, and generally, it’s tens of times leverage. Between 2023 and 2024, some exchanges with contracts offering leverage in the hundreds or thousands have been suspected of operating casinos and have been investigated by domestic public security agencies. Once an exchange is identified as operating a casino, your recruitment may be considered as aiding in the crime of operating a casino. Therefore, for cases of recruitment being classified as aiding in the crime of operating a casino, a prerequisite is that the contracts of the exchange are identified as operating a casino. Currently, there is no public information indicating that these two exchanges have been implicated in cases of operating a casino through referral commissions.
3. During the process of recruiting new users and providing commissions, are there any false representations? For example, informing the other party that they will definitely make money by following your lead, encouraging them to trade contracts, and ultimately profiting from their transaction fees poses risks of fraud or illegal use of information networks. This needs to be analyzed in conjunction with the specifics of the case.
4. If too many people are recruited, for example, recruiting hundreds of people, from a preliminary interpretation, if there are no layers of business subcontracting down, and no false promotion, the lawyer's perspective is that it does not involve criminal offenses. At most, according to the notice on further preventing and dealing with the risks of trading virtual currency speculation, the business of recruiting new users for trading virtual currency may be regarded as illegal financial activity. The 924 document is merely a document and cannot directly serve as a basis for punishing or confiscating profits from recruiting new users, nor can it be directly recognized as a criminal offense; it must be further determined based on the details of the recruitment business. $BTC
