In mainland China, virtual currency trading is facing increasingly strict regulations. If you do not clearly understand the legal risks involved, you may unintentionally violate the law. Here are the three major legal red lines in virtual currency trading: once crossed, not only may your bank card be frozen, but serious cases may even involve criminal offenses.
First, selling U to 'newbies'.
Some people, out of goodwill, sell U to 'newcomers' who are just starting to learn about virtual currency. However, if the 'newbie' is scammed while investing on a third-party platform, even though the transaction has been completed, the investigating authorities may mistakenly list you as a suspect, freeze your receiving account, and even hold you criminally liable.
Second, cash transactions of USDT.
Starting from the second half of 2024, the risks of offline cash transactions of USDT will increase significantly. Once you receive funds from telecom fraud, the public security authorities often treat you as a money laundering suspect, freeze your bank card, and send you to detention.
Third, buying and selling through certain unverified trading platforms.
If you conduct transactions on certain platforms without verifying the counterparty's information and receive funds from telecom fraud, the public security authorities will freeze your bank card, and you may be listed as a money laundering suspect, even being pursued online.
In short, the legal red lines in virtual currency trading cannot be crossed. You must understand the relevant regulations clearly to avoid serious consequences due to momentary negligence.