Are you afraid of getting burned in cryptocurrency trading? Then you must avoid these 3 major red lines!
Newcomers in the crypto world often ask: Is trading cryptocurrencies illegal? Will my bank account be frozen?
Today, I will explain it in simple terms, especially regarding the inflow and outflow of funds, where 90% of people get into trouble!
1. Is trading cryptocurrencies legal?
The answer is: Not illegal, but with conditions!
There are no direct laws in the country that state trading cryptocurrencies is a crime, but if you are dealing with Ponzi schemes, capital pools, or engaging in fraud or illegal fundraising, then the nature changes! Trading mainstream coins (BTC, ETH) is fine, but avoid those dubious projects that promise guaranteed profits.
2. Is the money earned clean?
Whether your earnings are legal depends largely on how the money was obtained:
Buying low and selling high on legitimate exchanges → legal income
Recruiting others, dividend schemes, or cashing out in black markets → may involve money laundering or fraud.
Here’s the key point: Even if you are trading legitimate coins, if you receive dirty money, your account could be frozen in no time, or worse, you could be invited for a 'chat' with authorities!
3. The most dangerous part: inflow and outflow of funds!
Trading cryptocurrencies won't get you caught, but problematic money will!
Selling USDT personally: Not illegal, but if the money the buyer gives you is from fraud, gambling, or embezzlement, your account can instantly become 'frozen' and you’ll have to cooperate with the investigation!
Becoming an OTC trader: Extremely high risks! Many people think arbitraging is a surefire way to profit, but end up being classified as illegal business operations or money laundering, and many cryptocurrency traders have already received prison sentences!
Regulatory stance: It's not about prohibition, but about risk prevention.
The country does not allow the establishment of exchanges, but Hong Kong has opened up compliant licenses, and future policies may become clearer.
Remember: Cryptocurrency is not a lawless land; smart people play within the legal framework.
