Some of you are curious about whether cryptocurrency is illegal in China. Today I will share an article about this.
In mainland China, you can trade in fiat currency in RMB, buy USDT, and then trade BB through USDT to exchange for cryptocurrencies such as Bitcoin and Ethereum, or use USDT to make contracts, and then trade in fiat currency through USDT. What are the legal risks of this transaction process?
The regulation of cryptocurrencies has been going on since 2013. There are three regulatory documents. The first one is the circular on preventing Bitcoin risks issued by the People's Bank of China and other departments on December 5, 2013, which clarifies the nature of Bitcoin. As a commodity trading behavior on the Internet, ordinary people have the freedom to participate in Bitcoin transactions on the premise of assuming their own risks. The Notice on Preventing the Risks of Token Issuance and Financing issued by the People's Bank of China and other seven ministries and commissions on September 4, 2017, 9 announcements prohibit the scope of the prohibition limited to the field of non-legal token issuance and financing. It does not prohibit individuals from owning, trading, and buying and selling Canadian currency, including Tether (USDT). On September 24, 2021, the People's Bank of China and ten other ministries and commissions jointly issued the Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation, which is the Notice No. 1237 of 2021, which is the 924 notice that everyone often hears, reminds citizens to guard against the financial risks brought by cryptocurrencies. However, the simple cryptocurrency trading behavior does not violate the relevant provisions of my country's current laws and administrative regulations.
The aforementioned notice from 2013, the announcement from 2017, and the notice from 2021 are normative documents and do not prohibit the trading of Canadian dollars.
In summary, individuals conducting cryptocurrency trading and fiat trading with RMB domestically are not illegal, but during the deposit process, if there are issues with the source of USDT, there may be risks of judicial freezing of the exchange account. Additionally, during the withdrawal process, if the USDT sold results in receiving funds that are proceeds from fraud, there is a risk of bank card freezing.
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