Virtual currency trading may seem like a modern investment method, but if one is not aware of the legal risks, crossing the red line could result in a frozen bank card at best, or facing criminal prosecution at worst. Here are the three major legal red lines that cannot be crossed when trading virtual currencies:
First, selling USDT to inexperienced 'novices'
If you sell USDT to inexperienced newcomers, and they are defrauded during the investment process, even if you have completed the transaction, the public security authorities may treat you as a suspect, freeze your receiving account, and even initiate criminal accountability procedures.
Second, offline cash transactions of USDT
Starting from the second half of 2024, the risks of offline cash transactions of USDT will significantly increase. Due to the susceptibility of cash transactions to telecom fraud, public security authorities often initially regard you as a suspect in fraud and money laundering during investigations, freezing your bank card, and may even send you to a detention center.
Third, conducting virtual currency transactions on platforms without real-name verification
If you trade on certain unverified virtual currency trading platforms and receive fraudulent funds, the public security authorities will freeze your bank card, suspecting you of money laundering, and may even investigate your account and pursue you online.
In short, one must always remain vigilant in virtual currency trading to avoid crossing legal red lines, ensuring that one does not engage in illegal activities during the investment process, and safeguarding one's legal rights.
