Wednesday, September 28, 2022
HomeLaw & PoliticsCrypto traders to face 10 years jail sentence in China

Crypto traders to face 10 years jail sentence in China

The Supreme Court of China specifically mentioned cryptocurrency trading as a method of unlawful fundraising in its newest judicial interpretation of criminal legislation. The Supreme People’s Court’s official view of how a law will be executed is known as a judicial interpretation.

When four requirements are satisfied, cryptocurrency trading is deemed unlawful fundraising: public fundraising, nonspecific fundraising objectives, promising profits on capital and interest, and acts that contravene laws and regulations.

According to Zhang Xiaoxiao, the creator of ChainAudit, which provides advisory services to China’s public security authorities on illicit economic operations, OTC, cryptocurrency exchange, ICO/IDO, yield farming, and cryptocurrency future trade are all examples of unlawful fundraising.

Illegal fundraising of more than 50 million yuan (US$7,913,645) or from 5,000 persons, or creating direct damages to contributors of 25 million yuan, can result in a prison term of more than ten years. On March 1, the judicial interpretation will take effect.

Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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