Let's popularize 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 using USDT to convert to mainstream cryptocurrencies like Bitcoin and Ethereum, or use USDT for contracts, and finally conduct fiat transactions again through USDT.
What legal risks are associated with this trading process? Regarding cryptocurrency regulation, there have been three regulatory documents from 2013 to the present. The first one is the notice issued on December 5, 2013, by the People's Bank of China and other departments regarding the prevention of Bitcoin risks, which clarified the nature of Bitcoin. Bitcoin trading, as a commodity trading behavior on the Internet, allows ordinary citizens the freedom to participate at their own risk.
On September 4, 2017, the People's Bank of China and seven other ministries issued a notice regarding the prevention of risks associated with token issuance financing, which limited the scope of the 94 notice to illegal token issuance financing 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 other ministries jointly issued a notice on further preventing and dealing with the risks of virtual currency trading speculation, known as the 2021 230 237 notice, which is often referred to as the September 24 notice, reminding citizens to guard against the financial risks posed by cryptocurrencies.
However, simple cryptocurrency trading does not violate the relevant provisions of our country's current laws and administrative regulations. The aforementioned notices from 2013, the announcement from 2017, and the notice from 2021 are normative documents, which also do not prohibit cryptocurrency trading.
In summary, individuals conducting coin-to-coin transactions and fiat transactions using RMB 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 the exchange account. Additionally, during the process of cashing out, if the funds received from selling USDT are from fraudulent activities, there may be risks of bank card freezing.