Author: Mankun
Introduction
Since the birth of Bitcoin, its price has repeatedly surged, driving a global cryptocurrency craze. At its peak, Bitcoin had exceeded $100,000, and the total market value of cryptocurrencies even temporarily surpassed the global US dollar circulation. Subsequently, numerous cryptocurrency trading platforms emerged, along with active over-the-counter trading using USDT as a medium.
Under current policies in our country, some people use crypto assets to privately exchange foreign currencies and RMB, earning from exchange rate differences and service fees. While seemingly technically harmless, this is actually under strict legal pressure. Such operations may involve the crime of illegal business operations under Article 225 of the Criminal Law and the crime of money laundering under Article 191.
In this article, Mankun's legal team will combine practical experience to help you understand: Why do crypto transactions frequently cross the "cross-border exchange" high-pressure line? What do you need to be aware of?
[The rest of the translation follows the same professional and accurate approach, maintaining the original text's structure and meaning.]II. Strictly Adhere to Personal Annual Foreign Exchange Quota Supervision Requirements
Buying and selling cryptocurrencies, on the surface, appears to be the act of buying or selling cryptocurrencies, but in essence, it is a conversion of monetary value between foreign currency and RMB, which falls under foreign exchange transactions. According to the Implementation Rules of the Personal Foreign Exchange Management Measures, personal foreign exchange settlement and purchase are subject to annual total amount management. The annual total amount is equivalent to $50,000 per person per year.
III. Avoid Using Anonymous Recharge Channels
When trading cryptocurrencies, one should choose platforms with regular KYC processes and ensure transparent transaction records. Recharging through P2P over-the-counter trading, mixer services, or privacy coin exchanges makes it difficult to trace the legality of fund sources. If suspected of money laundering or supporting illegal activities, the platform may freeze the account, leading to financial losses. Additionally, anonymous channels are easily exploited by hackers, and user fund security cannot be guaranteed.
IV. Retain Legal Proof Materials
If studying abroad, one can provide admission notices, tuition payment notifications, and other proof materials to demonstrate the legitimacy of cryptocurrency trading. For citizens working domestically, one can retain labor contracts, wage statements, and tax payment certificates to prove that they are not engaged in cryptocurrency trading as a profession.
Conclusion
Cryptocurrencies themselves are not inherently "sinful"; the issue lies in whether the trading process involves cross-border transactions, circumventing exchange controls, anonymity, or evading supervision. Once these behaviors are linked to illegal operations, money laundering, or foreign exchange control, they may cross the red line.
Not understanding the law is not scary, but what is scary is recklessly charging into gray areas in a state of "ignorance is bliss". Whether individual investors or practitioners, before participating in cryptocurrency asset trading, they should be clear about legal boundaries and avoid unnecessary criminal risks.
