In fact, for ordinary people using a U card, as long as the source of U is legitimate, there generally won't be major troubles.
Currently, cryptocurrency assets are becoming increasingly popular, and traditional finance is beginning to merge with cryptocurrency assets, with new products like Bitcoin, Ethereum spot ETFs, and U cards emerging.
But under the circumstance that the notification from 9.24 is still valid, what everyone is concerned about is whether there are any legal risks associated with U card services and related businesses, as well as using U cards for transactions, currency exchanges, and capital outflows.
Let's first understand what a U card is.
In simple terms, a U card is a bank card that allows you to recharge, consume, and withdraw cash using USDT. The usage is similar to a regular bank card; once recharged, you can spend directly and also withdraw cash from ATMs.
However, it is important to note that when consuming with a U card, you are actually using legal currency, not directly using the U you recharged. The U card service provider will help you convert U into legal currency for settlement.
Let's put it this way, U card service providers are like 'licensed' cryptocurrency vendors.
So, is it compliant for those providing U card services and related businesses?
The answer is non-compliant, and there are risks.
According to the notification from 9.24, the exchange and trading of virtual currency with legal currency are illegal. Therefore, those providing U card services, regardless of whether they have an overseas license, must be cautious as long as they conduct business within our country.
So what about ordinary users of U cards? Is there any risk?
As long as your source of U is legitimate, there generally shouldn't be any problems. The risks of using a U card are similar to directly trading cryptocurrency assets. Moreover, the chance of receiving dirty money through a U card is relatively low, as the funds of U card service providers undergo strict scrutiny.
Is it possible to use U card assets for capital outflow?
Well, our foreign exchange management is quite strict. Each person has a limit on foreign currency exchange per year, and exceeding this limit is non-compliant. If you use a U card to circumvent this restriction, you might be fined or even suspected of committing a crime.
Finally, talking about this new thing, the U card, while convenient, also raises concerns. Will it become a new channel for money laundering or fund transfers? Also, how compliant are the U card service providers? These are all points of risk.
Therefore, U card service providers need to strengthen compliance efforts to cope with unknown risks. Everyone should also be vigilant when using U cards.
