Trading virtual currency involves three major legal red lines. The light consequence is a frozen bank card, while the severe consequence may involve criminal charges.

What are the legal red lines for trading virtual currency in mainland China? Once these red lines are crossed, the light consequence is facing a frozen bank card, while the severe consequence could lead to criminal offenses. Let's hear what professional lawyers say:

First, selling USDT to novices. If a novice takes USDT to a third-party platform for investment or contracts, and although the transaction is completed, it is the novice's issue that leads to a scam, some law enforcement units in reality may freeze your receiving bank card and even list you as a criminal suspect.

Second, cash transactions. Starting in the second half of 2024, there has been a noticeable increase in people engaging in offline cash transactions of USDT who are being apprehended by authorities, because as long as the source of the received funds is from fraud, the authorities will suspect you of money laundering and will send you to detention.

Third, buying and selling USDT on certain exchanges without verifying the counterpart's information. If the funds received are from fraudulent activities without real-name payment, your bank card will be judicially frozen, facing special conditions for unfreezing. If you are a USDT trader whose card has been frozen, and the authorities notice frequent transactions, they may initially determine that you are involved in money laundering and could even add you to a wanted list.