How can the cryptocurrency industry navigate safely under the new regulations?
With the rapid entry into force of the "Interpretation on Several Issues Concerning the Application of Laws in Handling Criminal Cases of Money Laundering" jointly issued by the Supreme People's Court and the Supreme People's Procuratorate, the cryptocurrency industry has ushered in a new legal environment. Although this new regulation is not specifically designed for the cryptocurrency industry, it clearly includes "virtual asset transactions" in the bottom-line clause of money laundering crimes, which undoubtedly sounded the alarm for people in the cryptocurrency industry.
Is cryptocurrency speculation a criminal offense? In fact, the new regulations do not completely prohibit cryptocurrency speculation, but rather target the use of virtual assets to launder money and other upstream criminal proceeds to conceal the proceeds. Therefore, as long as the source of funds is legal, cryptocurrency speculation itself does not constitute a crime. The key is that cryptocurrency participants need to ensure that the transaction funds are "clean" and avoid intersections with illegal funds.
Risk Focus: Coin traders and high-frequency OTC traders Under the new regulations, these two groups of people face higher criminal risks due to frequent contact with capital flows. To prevent it, special attention should be paid to the identity and source of funds of the transaction object to ensure that the transaction is legal and compliant.
Self-protection strategies:
Clarification of the source of funds: Keep a detailed record of each fund used for cryptocurrency speculation to ensure that the source is legal and traceable. Keep transaction records: Keep records of crypto asset trading platforms regularly, including purchases, sales and other links, to prevent emergencies. Reduce OTC frequency: Reduce unnecessary OTC transactions, choose reputable channels, and clarify the responsibilities of both parties through signing agreements to reduce risks. Maintain the integrity of the capital chain: Ensure the continuity of capital flow and avoid situations where the source of large amounts of funds is unknown or difficult to explain.
