Trading virtual currencies has three major legal red lines: minor consequences like frozen bank cards, and serious consequences that may involve criminal charges.

What are the legal red lines for trading virtual currencies within mainland China? Once these red lines are crossed, one may face frozen bank cards for minor offenses, or even criminal charges for serious ones. Let's hear what professional lawyers have to say:

First, selling U to novices. If a novice withdraws U to a third-party platform for investment or contracts, and despite the transaction being completed, if the novice is scammed due to their own issues, some law enforcement units may freeze your receiving bank account, and some may even classify you as a criminal suspect.

Second, cash transactions. Starting from the second half of 2024, there have been many instances of people engaging in offline cash transactions of Usdt being apprehended, because as long as the source of the received funds is related to fraud, the authorities will suspect you of being involved in money laundering and will send you to detention.

Third, buying and selling U on certain exchanges without verifying the other party's information, where the counterparty pays with non-real-name funds that are fraudulent. If you receive the funds, your bank card will be judicially frozen, and you will face the process of refund and unfreezing. If you are a U dealer and your bank card is frozen, the authorities may suspect you of money laundering based on your frequent transactions, and may even put you on the run.