Chinese courts will now issue prison sentences if individuals engage in cryptocurrency fundraising activities from the public.
New Guideline: Crypto Fundraising a Punishable Offense
After an intense crackdown on trading and mining, China is taking its anti-crypto stance to another level. For the first time, China’s Supreme People’s Court announced a change in the interpretation of the country’s Criminal Law to make it illegal to raise public funds through “virtual currency”. According to the official court documentthe new law will take effect from March 1st.
In the event that the fundraising amount for cryptocurrencies exceeds 100,000 yuan (US$16,000), the public deposit will be considered a “large amount”. On the other hand, if the amount exceeds 500,000 yuan (US$79,000), it will be flagged as “other serious circumstances” as stipulated in Article 192 of the Criminal Law.
Changes were also introduced with regard to sentencing and punishment for crimes associated with illegal fundraising. The Supreme Court has retained the original features of the law and has new ones including – crime, online lending, virtual currency transactions, finance leasing, etc., to the newly revised document.
According to reportsThe main idea behind the review is to clarify the application of relevant laws, better implement the criminal policy of rigorously incorporating leniency, punish illicit fundraising crimes provided for by law, and preserve national financial security and stability.
China’s strict cryptocurrency policy is not surprising. In September 2021, authorities declared all cryptocurrency transactions illegal. Since then, regulators have created various policies to completely get rid of any operations related to the cryptocurrency sector.
However, the hype surrounding NFTs doesn’t seem to be cooling down. The fever around this new space is getting even more fierce with the entry of high-profile Chinese companies such as Tencent.
CryptoPotato had previously reported that the state-backed Blockchain Services Network (BSN) is eyeing a new platform that supports non-fungible tokens. The upcoming project is set to provide application programming interfaces for users to develop and manage user portals and applications related to NFTs.
Instead of traditional marketplaces that use cryptocurrencies or some sort of digital asset, BSN’s new platform customers can only use Chinese Yuan for purchases and service fees. Initially, BSN plans to integrate the NFT platform with ten networks, such as Fisco Bcos, started by WeBank.
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