The risks associated with virtual currency you play with never come from banks. If you are still worried about whether the bank will check you, you may very likely end up not knowing how you died in the future.
The bank's issues are never a big problem; it's easy to resolve when the bank calls you for confirmation. Even if the bank freezes your account for risk control reasons, it can be easily resolved and unfrozen, and it will not cause you any actual loss.
Your real risk comes from the public security judicial system, which is the risk of criminal activity.
Trading in the coin circle is simply spending money to buy coins or receiving money to sell coins.
Your money and coins may indeed be clean, but how can you ensure that the money and coins of your trading partner are also clean? How can you guarantee they are not involved in cross-border currency exchange, telecommunications fraud, extortion, or gambling-related crimes?
You are now lying on the sofa, enjoying the air conditioning and drinking coffee. Of course, you can confidently say you don't know, and you can argue that his illegal acts have nothing to do with you, since you haven't committed any crimes. Who would dare to wrongly implicate you?
But when the day really comes, it won't be this picture. Most people actually have no experience dealing with the police, and they panic when questioned. When the police arrest you for questioning, can you claim you didn't know? The state has defined virtual currency as not protected by law, and you didn't know? Various platforms are filled with promotions stating that virtual currency is being used by criminals for money laundering, and you didn't know? By then, handcuffed and under bright lights, when the police frown at you, will you still have the courage to argue back?
Then the police tell you your behavior is suspected of illegal business, suspected of concealing illicit gains, and suspected of aiding information network crime, and you could be sentenced to three to five years. How will you explain? How do you explain? You don't even know what the criteria for these charges are, what can you do besides protest your innocence? Just not being scared is a small victory.
At that moment, the police say you don't seem like a bad person; if you cooperate well, sign the record, admit guilt and accept punishment, they will let you go. If you are willing to compensate, they will no longer pursue you. At that time, can you hold out and refuse to sign? You understand nothing about the law, you can’t even be sure how those charges the police mentioned earlier are specifically determined or whether they can be determined for you, yet you are really willing to gamble your freedom by holding out and not signing? Don't be ridiculous, 99% of people can't hold out. Most likely, you won't even look at the record and will immediately give in and sign.
Most people should not always think they can eloquently argue in court and defeat the prosecutors with logic. Most people will panic long before they even reach that stage in court, agreeing to whatever they are told to acknowledge or sign. Even if you know that you should not sign anything casually, do you know what can be signed and what cannot? You know nothing, yet you insist on holding your ground? In this legal context, you do not have the right to remain silent.
In reality, when you trade precious metals, luxury goods, and cigarettes and alcohol, it may also involve illicit goods or accounts. But since trading these items is legal, as long as your trading behavior aligns with that of an ordinary consumer, and as long as the public security and prosecution cannot prove that you knew or should have known, or were likely to know, then you are considered to be unaware, you are acquiring in good faith, you are a good faith third party, and you do not bear responsibility for trading in illicit goods or receiving illicit funds.
However, regarding virtual currency, because of the 924 notice + (Notice on Further Preventing and Handling Risks of Virtual Currency Trading Speculation), buying and selling virtual currency is deemed illegal business activity. You are participating in an illegal activity, and if it involves illicit funds or property, then it is not up to the public security agency to prove that you 'knew,' but rather you need to find a way to prove that you were subjectively in a state of 'not knowing' regarding the illegal gains you received. If you cannot prove you did not know, then you are considered to have known, and it can be forcibly presumed that you did know.
Once it is determined that you knew, if you knew it was dirty money or dirty coins and you still accepted it, who would be penalized if not you?
Additionally, never casually trust and use various online tricks.
Including but not limited to actions like asking you to transfer received money to another card immediately, asking you to concoct reasons for immediate withdrawal, asking you to wear a mask to a remote location for cash transactions, asking you to use foreign chat software for communication, using encrypted chat software, or even asking you to delete communication records in a timely manner. These actions are not helping you; instead, they are harming you.
The money you receive may either have problems or not. If there are no issues, then these actions are completely unnecessary. But once a problem arises, although these actions may make it harder for public security to freeze your account or confiscate your funds, on the other hand, these actions may also be used as evidence of your subjective knowledge. After all, if it was a normal transaction, why would you need to rush in and out? Why would you need to concoct reasons to withdraw immediately? Why engage in secret cash transactions? Do your unusual behaviors indicate that you already knew this transaction had issues? Did you know there was a problem and still participate in the transaction, are you not aiding a crime?
Although the police will definitely link you with those charges if your account involves illicit funds or dirty coins, they are not fools. They will differentiate whether you genuinely participated in a crime, just tried to exploit a gray area for a little benefit, or were simply a naive victim. They have handled so many cases and will have their distinctions in their responses.
If you have no unusual behavior and are just conducting normal transactions, the police will intimidate you a bit, and you will be too afraid to touch virtual currency again, and you are willing to compensate to avoid trouble for the police, they won't make it hard for you anymore. But if you truly use all means to resist investigation, and then still claim you are unaware and that your transactions are normal, do you think the police will believe you? If they don’t send you in, do you think it makes sense to them?
In general, the current attitude of the state is that it is not allowed to engage in this within the country. If you want to operate in the country, either there is risk or it is difficult.
For example, you find a large platform, look for a reputable OTC with a long history, make sure to verify the other party's transaction history, and ensure that their trading account and KYC information are consistent, then conduct transactions at market fair prices. This does not eliminate all risks, but if problems arise, you can provide this information to the police, which may lead to reduced penalties or no penalties for you.
For example, if you find someone completely inexperienced, and this is their first participation in virtual currency through trading with you, you also have to ensure that the funds they are using are their legitimate income, and you have to confirm that they are acquiring virtual currency purely for investment. Not to mention how hard it is to find someone completely inexperienced, you also need to ensure their purpose is purely investment and holding. Yes, you heard it right, you are also responsible for their usage; even if they foolishly get scammed in the future, it can still implicate you. There are many cases like this, where your transaction is completely fine, but they use the virtual currency they bought from you to exchange for currency overseas, to participate in gambling, or even foolishly get scammed of their coins. If the police ask them where their coins came from, and they say they bought them from you, you still face the risk of punishment.
Therefore, if you are within the country, you can only try to minimize risks; it is almost impossible to achieve no risk.
Is there a completely risk-free model? Yes, but you must be overseas and entirely outside.
Virtual currency trading is legal in some overseas countries and regions, where licensed institutions participate in virtual currency trading. You just need to ensure that your money and coins are not illegal, and then you can trade with licensed platforms and licensed institutions, which means you are engaging in C to B trading. You don't need to verify the other party, and you inherently become an unaware good faith third party. Even if the other party’s money and coins have issues, you are not responsible because the other party is licensed, and the responsibility for verifying the money and coins lies with the other party’s KYC process, not yours as an ordinary individual investor.
However, to apply the legal environment of overseas, you must be entirely abroad, with legal overseas accounts, legal overseas funds, and legal overseas exchanges. Your funds, if they are to cross borders, must also be legally settled in and out.
If you can't achieve being entirely overseas, then you return to the previous dilemma: domestically, no virtual currency trading platforms or institutions are recognized. Therefore, all virtual currency-related transactions you conduct domestically are equivalent to C to C transactions, and you have the obligation to verify the other party.
So what does it mean to have proper audits? How thorough does it need to be to be considered sufficiently thorough? No matter how thorough your audit is, the police can always question you. If your audit was thorough, why didn’t you discover that the other party’s money was dirty? If you received dirty money, then sorry, you did not conduct a thorough audit, you are considered to have 'known.'
You may indeed not have participated in a crime, you may indeed not know that the other party's money or coins involve a crime, you may just be looking for convenience or a small price difference, but sorry, that is presumed knowledge.
I don't trade coins, but the market environment has been so poor in recent years that many financial friends around me have tried trading coins. It can be said that it is naively foolish.
There are many traders who fall into traps. And from the cases I've seen, the more they think they are just doing trades and that speculating on coins is not illegal, the more they get caught.
Those who are absolutely sure they won't have problems are more likely to fall into traps because you have no sense of precaution.
Moreover, the pitfalls involving virtual currency often have a lagging nature, meaning that a transaction you conduct today may only have problems days, months, or even years later.
So, if the amount is indeed not small, based on the successful experiences of friends I know, it is best to consult a lawyer as early as possible, prepare a set of plans to avoid being caught off guard when the police stand in front of you one day.
Moreover, if you talk to a few lawyer friends, you will understand that the first time is very important, much more than most people think. The first inquiry, the first record, your first response can often greatly influence the final judgment of the public security and prosecution regarding your case. We do not expect to turn black into white, but at least you should not let your own panic and mistakes lead to white being smeared into black, right? Many things, if you assert they are white, they become white, and that might not be difficult at all. But once they are smeared black, trying to turn them back to white becomes extremely difficult.
Still the same saying, if you don’t know what to do in a bull market, click on my profile, follow me, for bull market spot planning, contract passwords, and free sharing.
I need fans, and you need references. Guessing blindly is worse than following.
