In yesterday’s article, Ju Zuo interpreted and commented on what Professor Yang Kai wrote.

But to be honest, those aren't the words I wanted to say.

So today I will write another article to talk about my views on the judicial disposal of digital assets.

Please note that the term used here is digital assets, not virtual currency as used in the official terminology.

We all know whether this thing is fake or not.

If it were really false, it would not have put the country's judicial system in such a difficult position.

Therefore, this article will adopt a unified term: digital assets.

If you do not agree, you can replace it with virtual currency yourself. There is no conflict.

First of all, we need to clarify a concept: what is the judicial disposal of digital assets?

Digital assets have been defined in the previous paragraph, so in this context, it means the disposal of digital assets by the judicial system.

So the next question is, why does the judicial system need to deal with digital assets?

This requires a piece of history.

After 2018, a new way of playing Ponzi schemes emerged in the industry. In the past, Ponzi schemes often used fiat currency as the deposit, but with the popularity of the blockchain concept, Ponzi schemes exclusively for people in the cryptocurrency circle also emerged, which used digital assets as the base currency for deposits and coins in and out.

Later, other gameplays emerged, such as coin in and U out, disk + coin, and coin + disk.

But you know, Ponzi schemes are illegal and criminal activities in our country, and the public security organs must crack down on them, so they seized a large number of digital assets, the most famous of which is PlusToken.

As the first place in the country to take the plunge, Yancheng set a precedent in the disposal of digital assets and then became a martyr.

When Yancheng was disposing of this batch of assets, there were no so-called regulations and laws nationwide. Later, after an evaluation by a law firm, it was directly sold to some OTC merchants in the form of bulk transactions, converted into legal currency, and finally entered the treasury.

Because the amount involved in the case was too huge, there were many different opinions in public opinion, and the process was indeed not in compliance with regulations. Later, during the retrospective investigation, the relevant personnel who were responsible for the disposal of these assets at that time are now feeling uncomfortable, and one of them was even a senior leader who was dismissed.

This involves a question, which is the necessity of disposing of digital assets.

In the eyes of local authorities, there is actually not much difference between digital assets and things like mining machines and jade. The seized illegal assets must eventually be converted into legal currency, otherwise the assets will not generate liquidity if left there, which is actually a waste. Therefore, the auction or disposal of seized assets is actually a standardized process.

The only difference lies in the different categories of assets being disposed of, just like jade. You can say a piece of stone is worth tens of millions, or you can say it is worthless. But compared with digital assets, at least the value fluctuations of digital assets are not that great because there are standard reference market prices.

But the problem lies in the policy environment at that time.

It is clearly written in the 924 document that if legal currency and virtual currency exchange business, virtual currency obsession exchange business... are carried out and illegal financial activities are suspected, and if a crime is constituted, criminal liability will be pursued in accordance with the law.

This document caused the market to plummet at the time.

Not only the leeks were scared, but also those who were doing the disposal business were scared.

Not only OTC merchants but also people within the system who handle the business, if you exchange virtual currency for legal currency, it will be directly classified as illegal financial activity, and you may even be held criminally liable.

Who would dare to do this to you?

Therefore, after reaping this wave of dividends, many OTC merchants have withdrawn from the stage of history, because individuals have neither the means nor the authority to dispose of these digital assets.

So what happened next?

Find foreign exchange settlement funds.

This business is packaged as a foreign exchange settlement business, and the money is the money recovered from the settlement. Although the cost is high and the process is complicated, at least the source of funds can be clearly explained, and the money that can be transferred to the local area is clean.

As for whether it is truly business-related, it is actually not that important.

But strictly speaking, this is not compliant.

Because you are using clean funds obtained at a higher cost, but this business does not actually exist, which violates the relevant regulations of the State Administration of Foreign Exchange.

It’s fine if nothing happens, but if something happens you’ll be in big trouble.

Moreover, when the entity that you are settling foreign exchange with is doing this business, there is actually input, and the place where the business entity is located will record this income within the scope of tax.

You have to pay taxes, but you just have to pay such a large amount of cash flow. You don’t even know if the profit you earn is enough to pay the taxes.

You don't pay taxes, huh, things like this are clear once checked, so I won't elaborate on it.

After communicating with industry veterans today, they told me that there are actually more potential risks.

Therefore, those who are more in-depth in this have gone overseas, and they also understand risk isolation.

The physical body is outside, just send some trade funds over and be done with it. If anything goes wrong, arrest the traders. They are abroad and you can't catch them even if they are pimps.

Even this, which is just a matter of handling the situation, is already very complicated and involves deep conflicts of interest, coupled with compliance risks. Therefore, after being in contact for a period of time two years ago, Juzuo quickly withdrew. This kind of risk is not something I can afford.

In the past, when asset disposal first started, local authorities had unclear views on the value of digital assets, and coupled with human interference, the processing point was relatively low. Have you ever seen a 20% discount U?

But now, local governments have also learned their lesson and most of them have started to bid.

Although there will be profit margin for the disposer, the highest discount is only 98%.

The capital cost, brokerage fee, profit, etc. are all included in these 8 points. If you really want to finish processing them, the profit you get is only about 2 points.

Therefore, if your connections are not strong enough, your financial resources are insufficient, and your professional skills are not strong enough, you will not be able to get this job at all.

Even so, you can only make money by cash flow, because the profit is fixed, and the only way to make money is to increase the cash flow.

But you have a lot of money flowing in and you are in the country. Are you afraid that one day you will be implicated in a case and taken away directly?

To put it nicely, it is asset disposal, but to put it bluntly, it is no different from walking on the edge of a knife.

The ones who are truly invincible in this game are the local authorities.

The so-called judicial disposal means that local governments deal with digital assets through judicial disposal, rather than allowing a group of people to make a lot of money through judicial disposal. Don’t think that you are a leader just because you eat with the leaders every day.

The matter of judicial disposal is far from being able to be fully described in one article. During this period, Juzuo encountered various scammers using this name, for example, they would say how big the target is that can be handled, and how strong their connections are that can get it done, but a deposit must be paid first.

Then he cheats a few people out of their deposits, and you’ll never find him again.

I have also seen merchants who helped with disposal being asked to spit out the waste after they were done.

There are so many strange things that I can’t list them all in one article, and it’s hard to describe them in words, so I’ll stop here today.