Coin World News Report:
On August 19, the Supreme People’s Court and the Supreme People’s Procuratorate issued the “Interpretation on Several Issues Concerning the Application of Law in Handling Money Laundering Criminal Cases.” Lawyer Liu also conducted analysis and interpretation of the document (see: “New Interpretation: ‘Virtual Assets’ Defined as Money Laundering Tools, What Impact Does It Have on the Coin Circle?”). However, in the past few days, many friends in the coin circle have consulted Lawyer Liu, asking if virtual currency trading will be prohibited in mainland China in the future. It seems as if doomsday has arrived for the coin circle. Of course, I have also seen an article interpreting the judicial interpretation of the “two highs” as “the Supreme People’s Court recognizing virtual currency trading.” In fact, both of these views are extreme. Today, Lawyer Liu will write a simplified legal article to explain in plain language the impact of the “Interpretation on Several Issues Concerning the Application of Law in Handling Money Laundering Criminal Cases” (hereinafter referred to as the “Interpretation”) on the coin circle.
1. What exactly is the “Interpretation”?
If you have carefully read the original text of the “Interpretation,” even if you don’t understand any legal knowledge, you will notice the first sentence of the “Interpretation”: “To punish money laundering crimes in accordance with the law…”. This means that the effectiveness of this “Interpretation” is limited to judicial organs cracking down on money laundering crimes. In addition, the specific provisions of the “Interpretation” do not stipulate that all “virtual asset transactions” are prohibited, but rather strictly prohibit the transfer and conversion of proceeds of crime and their gains through “virtual asset transactions” and financial asset exchange methods. In other words, if your virtual currency transactions are not used for money laundering activities, there is no need to be nervous. Just follow the principle of “what is not prohibited by law is permitted.” In current judicial activities in mainland China, the fundamental provisions regarding virtual currency are still based on the content of the “September 24th Notice” (“Notice on Further Preventing and Disposing of Risks Associated with Virtual Currency Trading Speculation”)…
2. The current attitude of mainland China towards virtual currency trading
Is virtual currency trading still allowed in mainland China? Lawyer Liu can give everyone a definite answer: Virtual currency trading is still not prohibited in mainland China, but the investment and trading activities of virtual currency in mainland China are not protected by law (strictly speaking, they are not protected by civil law when they violate public order and good customs. In practice, some people use virtual currency transactions for fraud, theft, illegal business, pyramid schemes, or operating gambling crimes, and even more common crimes such as aiding and abetting or concealing crimes still fall under the jurisdiction of the law). As for the fact that some judicial interpretations now mention terms such as “virtual currency” and “virtual assets,” it is mainly because the activities of money laundering, illegal fundraising, and illegal business crimes using virtual currency are becoming more and more prevalent, which has attracted the attention of the Supreme People’s Court and the Supreme People’s Procuratorate.
3. Can virtual currency still be bought and sold in mainland China in the future?
As mentioned above, the “September 24th Notice” is still the most authoritative document in mainland China that defines the nature of virtual currency and the trading activities. Lawyer Liu recommends that friends in the coin circle (regardless of whether they are legal professionals) should read it thoroughly and strive to understand it thoroughly. Of course, for friends who do not have the time, you can directly contact Lawyer Liu (advertisement for myself). As long as the “September 24th Notice” is not abolished or amended, virtual currency trading can still be carried out in mainland China. However, as the judicial organs pay more and more attention to virtual currency, the responsibility of players in the coin circle will also become heavier. Whether it is withdrawing or depositing funds, conducting KYC and AML checks becomes more and more important. Simply put, do not use virtual currency for illegal criminal activities, and do not accept dirty money (especially in the case of large amounts of deposits and withdrawals).
4. Conclusion
In reality, some friends may say, “How can I guarantee that the money given to me by the other party is 100% clean? I am not a bank, how can I conduct anti-money laundering checks?” For friends with this mindset, Lawyer Liu, who is straightforward, has only one suggestion: Just stay away from the coin circle, after all, no one is forcing you to enter, right? Gentle and kind Lawyer Liu may suggest: If you just want to experience it, you can play a little; if you want to make a fortune or turn your life around through it, you must have your own legal advisor and at least pay attention to Lawyer Liu, so that you can keep up with the latest legal knowledge in the coin circle.
