China Warns Citizens of Consequences for ‘Facilitating’ Crypto Trades

China Legal
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Tim Alper
Author Categories
About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
A metal token intended to represent a cryptoasset rests on the flag of China.
Source: RareStock/Adobe

A Chinese ministry has warned citizens of the severe consequences of “facilitating” crypto transactions on behalf of other people.

The nation has exacted two sweeping crackdowns on crypto, one in 2017, and the other in 2021.

The first crackdown mainly targeted crypto exchanges, forcing most brokers and trading platforms away from the Mainland.

The second crackdown forced banks to shut down crypto-related transactions and outlawed crypto mining.

Regardless, many Chinese traders remain crypto-keen.

And Cryptonews.com has seen evidence of a thriving Chinese over-the-counter trade in coins in 2023, with USDT and Bitcoin trades seemingly the most popular.

21st Century Business Herald (via Stockstar) reported that there has been a rise in social media posts uploaded by people attempting to recruit third-party crypto transfer “accomplices.”

One such post read as follows:

“Help people transfer and remit money to earn thousands of dollars a day. It’s easy!”

These “recruiters” say that they are posting lucrative “side jobs.”

But the Ministry of Public Security warned that individuals who take part in these “schemes” are “very likely to commit the crime of assisting IT network fraud.”

The ministry, as well as legal and IT researchers, warned that “fixed-term” jail sentences and fines await those convicted of such crimes.

Why Do Some Chinese Citizens Want to ‘Facilitate’ Crypto Trades?

The media outlet gave the example of an individual surnamed Geng who reportedly processed almost $1 million worth of crypto-related transactions through his personal bank accounts.

Geng, police said, received a “favor fee” of up to around $418 for each transaction.

But Geng and his associates have since been charged with a range of crimes, the media outlet noted.

China’s updated criminal code details that “helping others to use information networks to commit crimes, and providing Internet access, hosting servers, providing network storage, and providing communication services” are punishable. 

The code can be applied to those facilitating crypto trading on behalf of others, experts warned.

If courts judge that the crimes are “serious,” perpetrators can be fined and jailed for up to three years.

Two other individuals, both surnamed Li, were sentenced to six to eight months in jail for using their own bank accounts to help others buy crypto.

The ministry and associated researchers claimed that “the most common form of cryptoasset-related crime” in 2022 was money laundering, which accounted for 55% of the year’s total.

A further 21% cases were related to fraud, while gambling and pyramid schemes both accounted for a smaller number.

Last month, a group of stablecoin operators was detained by police in Shanghai.

More Articles

Blockchain News
Russian Authorities Block Access to Country’s Largest Crypto Aggregator Platform
Jimmy Aki
Jimmy Aki
2025-02-10 14:19:31
Altcoin News
Brazil’s B3 Stock Exchange to Launch Bitcoin Options and Futures for ETH and SOL
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-10 12:05:00
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors