What are the legal red lines for trading virtual currencies in mainland China currently?
Once you cross the red line, you may face a frozen bank card at best, or even criminal charges at worst.
Let's hear what the professional lawyer friends have to say:
Firstly, selling USDT to novices. If a novice takes USDT to a third-party platform for investment or contracts, even if the transaction is completed and it is the novice's fault that they were scammed, in reality, some law enforcement units will freeze your receiving bank card, and some may even list you as a criminal suspect.
Secondly, cash transactions. Starting in the second half of 2024, many people began to engage in offline cash transactions of USDT under pressure from authorities, because as long as the source of the funds received is fraudulent, the authorities will suspect you of money laundering and will send you to the detention center.
Thirdly, buying and selling USDT on certain exchanges without verifying the other party's information. If the payment is made by an unverified party and the funds are from fraud, your bank card will be judicially frozen, and you will face refund and unfreezing issues. If you are a USDT dealer and your card is frozen, and the authorities notice frequent transactions, they may initially determine that you are involved in money laundering and may even charge you with internet evasion.
