Why does the country prohibit cryptocurrency trading, while Sun Yuchen can operate without being arrested?

China's prohibition of cryptocurrency trading is primarily due to concerns about financial risks and social stability, including preventing capital outflow, combating money laundering and fraud, and avoiding speculative behavior without regulation that could lead to significant losses for ordinary investors.

As for why Sun Yuchen or other figures in the cryptocurrency circle are still relatively active in the industry, there are several reasons:

Activity areas and jurisdiction: Most of Sun Yuchen's business and activities are located overseas; for example, he actively participates in international blockchain projects like TRON, which primarily target the global market, and the operating entities and servers are often based abroad, thus not directly subject to Chinese law.

Legal definitions and evidence collection difficulties: Even if certain projects or actions may involve Chinese users, determining that they directly violate Chinese law often requires conclusive evidence and complex cross-border judicial cooperation, which presents certain challenges in practice.

Industry operation methods: Many practitioners continue to conduct business in regions where the law is ambiguous or permissive by establishing overseas entities and using technical means to circumvent access restrictions, to some extent detaching themselves from the direct regulation of a single country.

The dynamics of regulation and policy: The state's regulation of crypto assets is still being continuously improved, and for certain cross-border and cross-jurisdictional behaviors, there may be some lag in regulation or enforcement challenges.

It should be made clear that this does not mean that the relevant behaviors are completely legal or without risk.

As domestic and international regulatory policies gradually become clearer and more stringent, any operations involving cryptocurrency, including overseas projects, may face legal and compliance challenges.

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