Some people may have been trading cryptocurrencies for years without any problems, making a lot of money from the arbitrage business; but there are also some people who may have only traded once or twice, but their bank cards were frozen.
What is going on? Is it illegal to trade in cryptocurrencies? Why is my card frozen? How can I unfreeze it? This article will answer these questions.
1. Is it illegal to speculate in cryptocurrencies?
There are always some people who trade in cryptocurrencies who quietly ask Lawyer Shao, "I have a friend who makes a lot of money trading cryptocurrencies. Can I ask him if this is illegal? Will you get caught for trading cryptocurrencies?" I will educate these friends who have "extremely high risk awareness" while thinking to myself, "Your friend thinks it's illegal, so why is he breaking the law?"
Let’s start the serious science popularization.
According to relevant policies of our country, the following interpretation can be made:
1. Virtual currency cannot be used as RMB in my country;
2. Bitcoin and other virtual currencies are a kind of "virtual commodity"
3. Financial activities related to virtual currencies are illegal;
4. Transactions between individuals of virtual currency and legal currency, or between virtual currencies, are not prohibited.
Notice on Preventing Bitcoin Risks
Although Bitcoin is called "currency", it is not a real currency because it is not issued by the monetary authorities and does not have monetary attributes such as legal tender and compulsion. In terms of nature, Bitcoin should be a specific virtual commodity...
Notice on Further Preventing and Dealing with Risks of Speculation in Virtual Currency Transactions
(I) Virtual currencies do not have the same legal status as legal tender. Virtual currencies such as Bitcoin, Ethereum, and Tether have the following main characteristics: they are issued by non-monetary authorities, use encryption technology and distributed accounts or similar technologies, and exist in digital form. They are not legal tender and should not and cannot be circulated and used as currency in the market.
(II) Virtual currency-related business activities are illegal financial activities. Virtual currency-related business activities such as the exchange of legal tender and virtual currency, the exchange of virtual currencies, the purchase and sale of virtual currency as a central counterparty, the provision of information intermediary and pricing services for virtual currency transactions, token issuance financing, and virtual currency derivatives transactions are suspected of illegal financial activities such as illegal sale of token tickets, unauthorized public issuance of securities, illegal operation of futures business, and illegal fundraising. All such activities are strictly prohibited and resolutely banned in accordance with the law. Those who engage in related illegal financial activities that constitute a crime shall be held criminally liable in accordance with the law.
Therefore, simply buying and selling virtual currency is not illegal in itself, but the transaction itself is likely to involve illegal or criminal behavior. Lawyer Shao has mentioned many times that transactions in the eyes of U merchants are always just the tip of the iceberg. No matter how cautious you are, you cannot eliminate all risks and cannot avoid receiving black money or black U.
Therefore, the business of buying low and selling high to earn the difference in virtual currency may seem to be a sure win, but it is risky. At the very least, your credit card will be frozen, and at the worst, you may be suspected of criminal offenses such as aiding and abetting, concealing, and operating illegally.
2. What should I do if my card is frozen? Can it be unfrozen?
If your bank card is frozen because you received black money during a legitimate (here means without knowing the illegal or criminal behavior of others) virtual currency transaction, don't be afraid, communicate with the police as soon as possible to resolve the card issue (the earlier you communicate with the organizer, the easier it will be to resolve). If you are really afraid, or really don't have enough time and energy (because it may take multiple rounds of communication and submission of materials), you can entrust a lawyer to handle it.
Tell a case (from a lawyer)
Last month, a client said that his bank card was frozen a year ago, and recently he found that 700,000 yuan had been withdrawn from his card! After consulting the bank, he learned that the funds in the card were withdrawn by a court in Guangdong. The client was worried that he might be involved in a criminal case, so he consulted a lawyer for help. After further questioning the client, we learned that a year ago, when the card was just frozen, the client was contacted by the police to take a statement. At that time, the police asked him to explain the source of several funds in the card. Because the client did not understand the legal knowledge and it was the first time he was questioned by the police, he was very scared. Regarding the several transactions inquired by the police, he said in the statement that they were all money he borrowed from friends.
After learning this basic information, we contacted the police officer in charge of the case and learned that after the anti-fraud center checked the clues, the client's bank card was involved in a cross-border online gambling case, and some funds flowed into the card. Previously, the police contacted the client and asked him to explain the details of the relevant fund flow. After that, the public security handed over the client's transcript and corresponding supporting materials to the procuratorate. In the end, the court believed that the client's statement did not match the existing evidence already in the hands of the judicial organs. After the court made a ruling on the case of opening a casino, the client's money was deducted and confiscated in the name of gambling funds.
But after communicating with the person involved, we learned that these transactions were actually the money he earned from selling U. The buying and selling of virtual currencies between individuals is not prohibited in our country, but the person involved was afraid and lied that it was a loan, which backfired.
If he had told the truth when he was taking the statement, the bank card might have been unfrozen long ago, and 700,000 yuan would not have been withdrawn for no reason. But if he appealed, he would have to admit to the police that all the evidence he provided about the loan was false and that he had made false statements. Would he be suspected of obstructing testimony, destroying or falsifying evidence? It's hard to say, but the risk is there. So he could only admit that he was unlucky.
3. How to defrost?
First of all, it goes without saying that you need to provide transaction-related information, which is the most basic.
Secondly, formulate specific plans for unfreezing communication according to different transaction situations. For example, make a clear distinction between the frozen funds involved in the case and the funds not involved in the case, and give corresponding opinions and reasoning. Provide different evidence materials and legal basis for different parts of the frozen funds, and make detailed and full interpretations based on relevant policies and case situations, and provide legal opinions so that the judicial authorities can eliminate reasonable suspicion of the parties involved.
Again, and most importantly, is the issue of refund. Yes, as mentioned earlier, it is not illegal to speculate in cryptocurrencies, but judging from the actual situation of the current negotiations with the police, it is inevitable to refund a certain amount of money to the victims involved in the case. Although I understand the feelings of the parties involved, they just sold a U, but not only their cards were frozen, but they were also treated as bad guys by the police. They were victims, but they still had to pay money to others? But for example, if the money that flowed into your card was from a telecom fraud in northern Myanmar, in this case, the victim's money will definitely be wasted, and it will be difficult for the police to catch the person. But the victims do have losses, what should they do? Some victims will continue to complain and report because the police do not file a case or there is no progress after the case is filed. Therefore, the case-handling units also have their own difficulties... So, asking the cardholder to refund may be a balance that the case-handling units seek among the demands of all parties, right?
But don't be too discouraged, there is still a good hope of getting a partial refund.
hint:
Here are some simple suggestions on how to avoid having your card frozen for selling U. For example, do not trade with a certain counterparty frequently; try to choose large platforms for trading, because large platforms have a higher level of risk control, which is equivalent to screening the users who have settled in; do not trade frequently, and do not withdraw cash frequently; if the other party asks to let a third party transfer the money to you, it is recommended to cancel the transaction as soon as possible, because there is a problem in nine out of ten cases, no matter how reasonable his reasons seem.
Finally, if you unfortunately encounter the problem of frozen card, you must deal with it as soon as possible.