TechFlow news — On October 30, Xiao Sa, partner at Beijing Dacheng Law Firm, wrote an article stating that engaging in USDT exchange services within China may constitute the crime of illegal business operations as stipulated in Article 225 of the Criminal Law of the People's Republic of China.
Paragraphs (3) and (4) of this article state: "Where a person violates state regulations and engages in any of the following illegal business activities, thereby seriously disrupting market order, he shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also or alternatively be fined one to five times the illegal gains; where the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined one to five times the illegal gains or have his property confiscated: (3) illegally operating securities, futures, or insurance businesses without approval from the relevant competent authorities of the State, or engaging in fund payment and settlement services illegally; (4) other acts of illegal operation that seriously disrupt market order."
USDT possesses characteristics similar to legal tender, and exchange services are often linked to fund payment and settlement activities. The possibility of USDT serving as a substitute for legal tender in circulation could easily fall under the aforementioned catch-all provision. Xiao Sa's team believes that the nature of USDT exchange services closely aligns with the types of illegal business activities listed under the crime of illegal business operations.
Original URL: https://mp.weixin.qq.com/s/zVuGC5NEmXbfBh5Adejg7Q
