Recently, a fan privately messaged me, saying they made millions from trading cryptocurrencies and wanted to know whether this money would be confiscated, whether their bank card would be frozen when cashing out, and if it could even involve criminal cases? I specifically consulted with a lawyer friend, and here is a detailed interpretation:

  1. Is individual cryptocurrency trading legal?
    According to current laws, individual trading of virtual currencies is not illegal, provided that the source of funds for the transactions is legitimate.

  2. Will the profits be confiscated?
    Currently, there are no laws explicitly stating that individual profits from trading cryptocurrencies need to be confiscated. Trading cryptocurrencies is a self-risk undertaking, and whether one earns more or less is a personal matter that does not involve mandatory penalties or confiscation.

  3. Will the card be frozen when cashing out?
    If the funds received upon cashing out are proven to be from telecom fraud or other illegal sources, they may be frozen, and a refund procedure will be required to unfreeze them. However, if the trading behavior is normal and the price is reasonable, it will not involve criminal cases.

  4. Under what circumstances would it involve criminal issues?
    Typically, criminal situations mainly arise with 'U merchants', who frequently buy and sell USDT and operate on a large scale. Ordinary investors, as long as their source of funds and trading records are clear, usually will not be recognized as committing a crime.

Summary: Trading cryptocurrencies is not illegal, but when cashing out, it is necessary to confirm that the source of funds is legal and to keep transaction records to prevent freezing.