Let me clarify whether trading cryptocurrencies is legal
Trading cryptocurrencies does not violate laws and regulations. Individuals in mainland China can conduct fiat transactions using RMB to purchase USDT, then trade with USDT to exchange for mainstream cryptocurrencies like Bitcoin and Ethereum, or use USDT for contracts, ultimately converting back to fiat currency through USDT.
What are the legal risks associated with this trading process? Regarding cryptocurrency regulation, there have been three regulatory documents from 2013 to now. The first was on December 5, 2013, when the People's Bank of China and other departments issued a notice about preventing Bitcoin risks, clarifying the nature of Bitcoin. Bitcoin trading, as a form of commodity transaction on the internet, allows ordinary people the freedom to participate at their own risk.
On September 4, 2017, the People's Bank of China and seven other ministries issued an announcement to prevent the risks of token issuance and financing, which restricted the prohibition to the illegal token issuance and financing area, and did not prohibit individuals from owning, trading, or buying cryptocurrencies, including Tether USDT. On September 24, 2021, the People's Bank of China and ten ministries jointly issued a notice further preventing and addressing the risks of speculation in virtual currency trading, which is commonly referred to as the September 24 notice, warning citizens to guard against financial risks posed by cryptocurrencies.
However, simple cryptocurrency trading activities do not violate our current laws and administrative regulations. The aforementioned notices from 2013, the announcement from 2017, and the notice from 2021 are normative documents and do not ban cryptocurrency trading.
In summary, individuals conducting currency-to-currency trading using RMB and fiat transactions domestically are not illegal. However, during the entry process, if there are issues with the source of USDT, there may be risks of judicial freezing of exchange accounts. Additionally, during the withdrawal process, if the funds received from selling USDT are related to fraudulent activities, there may be risks of bank card freezing.