Attention! Is it legal to buy USDT at a low price on platforms like Binance on July 22 and sell it at a high price on July 26 to make a profit?

People who often use exchanges are familiar with such scenarios. This mainly involves two types of people. First, the buyers. Some users in China can become certified merchants on exchanges like OKEx and Binance by paying approximately 70,000 RMB as a margin for 10,000 USDT, completing identity and video verification, and binding their phone and email.

When they arrive at the C2C buy coin page, there are numerous merchants with listings. Look, there are merchants selling at 7.26 and buying at 7.22, earning 4 cents per USDT. If it’s 10,000 USDT, the profit can reach 400 RMB. During the same period, there are plenty of OTC merchants with similar listings, and some even require capital verification. This U merchant model allows the price-setting merchants to call the shots, relying on “small profits but quick turnover.” With a large capital flow and fast turnover, doesn’t this resemble elements of electronic fraud and money laundering? Large OTC merchants have annual settlement flows in the hundreds of millions, while smaller merchants also have several million; the larger the flow, the higher the profit, and the greater the risk.

On September 24, 2021, the central bank and ten ministries jointly issued a notice on "Further Preventing and Handling Risks of Virtual Currency Trading and Speculation," intending to remind citizens to be wary of financial risks associated with virtual currencies. However, as it stands, simple virtual currency trading does not violate current laws and regulations in our country. The so-called “freedom exists where there is no prohibition.” This notice is a normative document and does not prohibit virtual currency trading. However, frequent buying and selling of USDT in OTC transactions may raise suspicions of illegal financial activities, although it cannot currently serve as the basis for administrative penalties.

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