The case in which individuals were punished for participating in cryptocurrency trading while 'climbing the wall' has sparked widespread discussion. According to publicly available administrative penalty decisions, a local public security bureau penalized Liao and others for illegally connecting to the international network via VPN and profiting 90,000 yuan from cryptocurrency trading. Specific measures included: ordering them to cease internet access, issuing warnings, imposing a fine of 15,000 yuan, confiscating illegal gains of 90,000 yuan, and seizing tools such as phones and computers used for illegal activities.
Case Details:
• Illegal Activities: Liao and others illegally established or used other channels for international internet access using VPNs and similar tools without approval, engaging in cryptocurrency trading activities.
• Basis for Penalty: According to Article 6 and Article 14 of the (Interim Regulations on the Administration of International Networking of Computer Information Networks of the People's Republic of China), no organization or individual may establish or use other channels for international internet access on their own. Violators will be ordered by public security agencies to cease internet access, receive warnings, and may be fined up to 15,000 yuan; illegal gains will be confiscated.
Controversy Focus:
1. Legality of 'Climbing the Wall': Based on the aforementioned regulations, unauthorized use of VPNs and similar tools for international internet access is considered illegal. However, in practice, individual usage of VPNs is often less penalized, primarily targeting individuals or organizations providing VPN services or engaging in illegal activities.
2. Determination of Illegal Gains: In this case, law enforcement agencies have classified the 90,000 yuan profit obtained from cryptocurrency trading through 'climbing the wall' as illegal gains and have confiscated it. This determination has sparked discussion within the legal community. Some argue that illegal gains should directly stem from the illegal act itself. In this case, the illegal act is unauthorized international internet access, while cryptocurrency trading itself is not explicitly prohibited; thus, categorizing all trading profits as illegal gains may be contentious.
Legal Interpretation:
• Legal Risks of VPN Usage: According to current regulations, unauthorized use of VPNs and similar tools for international internet access may be considered illegal. However, in actual law enforcement, it primarily targets those providing VPN services or engaging in illegal activities using VPNs.
• Legal Status of Cryptocurrency Transactions: In mainland China, cryptocurrency exchanges are not allowed to operate, but the law does not explicitly prohibit individuals from holding or legally trading cryptocurrencies. Therefore, individual cryptocurrency transactions do not directly constitute illegal activities.
The key issue in this incident lies in the unauthorized international internet access rather than the cryptocurrency trading itself. The public should enhance their understanding of relevant laws and regulations to avoid unauthorized use of VPNs and similar tools for international internet access to prevent violating related regulations. Additionally, for cryptocurrency trading, one should comply with national policies and regulations to ensure their actions are legal and compliant.