China, once again, is making efforts to ban cryptocurrencies from its territory. This time, it was China’s Supreme People’s Court that decided to take its anti-crypto stance to an even higher level.
This Thursday (24), the court announced the 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 document, the new law will take effect from March 1.
China made one more step against cryptocurrencies again
If the value of cryptocurrency fundraising 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.
Possible penalties can vary significantly based on the amount of cryptocurrency involved in the alleged crimes.
If found guilty, the offender can be sentenced to up to 10 years in prison. In addition, fines of up to 500,000 yuan (US$79,000) may apply.
Changes were also made with regard to the conviction and punishment of crimes associated with illegal fundraising. The Supreme Court includes: crime, online lending, virtual currency transactions, finance leasing, etc.
According to reports, the main idea behind the review is to specify law enforcement and better implement criminal policy. Furthermore, it is desired to punish illegal fundraising crimes provided for by law.
China against cryptocurrencies
In 2017, in the boom of initial coin offerings (ICOs), China also banned crypto fundraising.
Last year, the Asian country declared all cryptocurrency transactions illegal. In May 2021, several Chinese provinces shut down cryptocurrency mining operations.
This came after Chinese Vice Premier Liu He stated that the country should “crack BTC mining and commercial behavior.”
Since then, miners have migrated to other countries such as the United States, Kazakhstan and Russia.