Chinese residents found to be investing in crypto assets have the potential to receive a 10 -year prison sentence.
The matter was announced personally by the Supreme Court of China through an official document uploaded on the official website of the country's court.
The new law will take effect on March 1, 2022.
Even so, the offense committed is based on four things:
Public fundraising up to 50 million yuan (RM33,215,150)
Fundraising is illegal or does not have a specific goal
Guaranteed return on capital and lucrative benefits
Any related activity has violated the law and supervision
According to ChainAudit founder Zhang Xiaoxiao: buying crypto OTC, through crypto exchange platforms, initial coin offering (ICO) or initial DEX offering (IDO), yield faming, and exchange of crypto currency futures is illegal fundraising.
For the record, XiaoXiao is an individual who offers advisory services to China’s public securities department related to economic crime.
Based on the recorded offenses, fraud involving 5,000 victims or causing losses of up to 25 million yuan (RM16,618,527) would result in a prison sentence of 10 years.
