Worried about trading cryptocurrencies? Avoid these 3 red lines!
Newcomers to the crypto world often ask:
"Is trading cryptocurrencies illegal?"
"Will my bank account get frozen?"
Today, I'll clarify this in plain language—especially regarding deposits and withdrawals, as 90% of issues arise here!
Is trading cryptocurrencies illegal?
It's not illegal in itself, but don't cross the line!
Trading mainstream coins like BTC and ETH is not illegal.
However, once you get involved in these, the nature changes immediately:
Value-added rebates, recruiting people? → Suspected of pyramid schemes
Guaranteed returns, investment funds? → Suspected of illegal fundraising
Black U transactions, fraud and profit sharing? → Clearly illegal
Key point: It's not trading that is illegal, but the things you are involved in that are illegal!
Is the money you've earned clean?
Can you spend your trading income with peace of mind? It all depends on where the money comes from:
Buying and selling through legitimate exchanges → Legal profits
Using black U, dividend schemes, or recruiting others → Suspected money laundering/fraud
Beware of “dirty money being transferred to your account”:
Even if you haven't done anything wrong, if you receive illicit funds—at best, your account gets frozen; at worst, you may end up cooperating with an investigation!
The most dangerous aspect: deposits and withdrawals!
Trading cryptocurrencies may not get you caught, but deposits and withdrawals can lead to big problems!
Selling USDT is not illegal
But if the other party's funds come from fraud or gambling, your account could be frozen immediately!
Being an OTC trader is even riskier!
Many people think that “arbitrage trading” is guaranteed to be profitable, but it can be classified as illegal business operations or assisting money laundering, and many have already been sentenced!
Regulatory stance: it's not about prohibition, but about risk prevention
Mainland China does not allow the opening of exchanges, but Hong Kong has opened up crypto licenses, and a compliant pathway is forming.
Smart people are playing within legal boundaries.
If you are trading cryptocurrencies, remember these 3 red lines:
Avoid investment funds, black U, and recruitment
Only use compliant exchanges, stay away from shady practices
Be extremely cautious with deposits and withdrawals, beware of “innocently getting implicated”
