All cryptocurrencies and any related transactions will now be considered illegal, under criminal law. This is the ruling of the Supreme Court of China. This ruling can essentially mean that any individual, business, or exchange is caught buying, selling, trading, or holding crypto tokens as well as raising funds in a cryptocurrency. These “monetary” forms can all be tried in court as a criminal offense.
Previously, in a statement related to the issue of controlling cryptocurrency trading activities in September 2021, the Central Bank of China stated all cryptocurrency trading activities in the world’s most populous country. will be considered illegal.
In fact, these are moves that have been predicted in advance and are an inevitable consequence after a series of tightening measures on the virtual currency market that have been thoroughly implemented by this country for a long time. via.
With the above decision to criminalize crypto-related activities, the suspects will be prosecuted under Article 176 of the Criminal Code of China. If convicted, violators could face between three and 10 years in prison, and a fine ranging from 50,000 yuan ($7,900) to 500,000 yuan ($79,000). Long prison sentences, as well as high fines, will be applied to large-scale offenses (calculated by property value infringing). For “less serious” cases, criminals can receive up to three years in prison, and fines ranging from 20,000 yuan ($3,160) to 200,000 yuan ($31,600).
In addition, China has also officially banned all forms of fundraising with cryptocurrencies. Furthermore, online lending and financial leasing are also considered fundraising activities, which are completely illegal. With the latest ruling, the judicial system has made it clear that the country has no intention of recognizing and protecting crypto-related interests.
The scope of the new ruling is expected to have far-reaching implications for the crypto market. The law refers to “cryptocurrency transactions”. Since any cryptocurrency-related movement is essentially a transaction, law enforcement can prosecute any individual involved in cryptocurrency.
It is important to note that China has its own cryptocurrency, called the “Digital Yuan”, and is backed by the state. The country probably wants to maintain absolute central ownership and supervision over cryptocurrencies.