Trading virtual currencies has three major legal red lines. The consequences can range from freezing your bank account to criminal charges. What are the legal red lines for trading virtual currencies in mainland China? Once crossed, you may face a frozen bank account or even criminal liability. Let's hear what professional lawyers have to say:

First, selling U to novices. If a novice takes U to a third-party platform for investment or contracts, and even if the transaction is completed, it is the novice's fault that they were scammed, some law enforcement agencies may freeze your receiving bank account, and some may even list you as a criminal suspect.

Second, cash transactions. Starting in the second half of 2024, there have been many instances of people being apprehended for conducting offline cash transactions of USDT. This is because as long as the source of the received funds is from fraud, law enforcement will suspect you of money laundering and may send you to detention.

Third, buying and selling U on certain exchanges without verifying the other party's information. If the payment is made with non-real-name funds that are from fraud, once you receive the funds, your bank account will be judicially frozen, facing special unfreezing procedures. If you are a U dealer and your account is frozen, law enforcement may initially determine you are involved in money laundering due to frequent transaction activity, and you may even be considered a fugitive.