On December 1, 2024, the Ministry of Public Security, in conjunction with the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the People's Bank of China, jointly issued the "Telecom Network Fraud and Related Illegal Crimes Punishment Measures," which came into effect. Once the behavior of trading virtual currency is identified as subject to the new regulations, it means that all cards under the individual's name will be unusable, along with credit sanctions on phone cards. Does this mean that any transaction involving virtual currency will be subject to punishment?

In response to this, I specifically consulted with my lawyer friend, and now I will interpret the impact of the punishment measures on the cryptocurrency sector. The new regulations are very clear: only those involved in telecom fraud and related crimes, or lending two cards (phone cards and bank cards), will be subject to punishment. In other words, purely trading virtual currency will not be punished.

So, which behaviors will be punished? If your trading of virtual currency or the assistance provided escalates to a criminal offense, it falls under the category of punishable actions. For example, if your trading of virtual currency constitutes a crime such as aiding and abetting, concealing crimes, or fraud, or if you provide a bank card to someone for trading virtual currency (simply put, selling U or similar), and that person is involved in aiding and abetting or other criminal activities, then you will be punished.

Now, do you understand?