The Chinese government has issued a warning to its citizens regarding the potential repercussions of facilitating cryptocurrency transactions on behalf of others.
The advisory comes as China has implemented two major crackdowns on cryptocurrencies, one in 2017 and another in 2021.
During the first crackdown, the focus was primarily on cryptocurrency exchanges, resulting in the relocation of most brokers and trading platforms outside of mainland China.
The second crackdown targeted banks, prohibiting crypto-related transactions and banning cryptocurrency mining.
Despite these measures, a significant number of Chinese traders remain actively involved in cryptocurrencies.
One individual, identified as Geng, allegedly processed nearly $1 million worth of crypto transactions through his personal bank accounts, receiving a fee for each transaction. However, Geng and his associates now face criminal charges.
China’s updated criminal code stipulates that aiding others in committing crimes through information networks and providing internet access, hosting servers, network storage, or communication services can lead to punishment.
Experts have cautioned that this provision can be applied to those facilitating cryptocurrency trading on behalf of others.
If courts determine the crimes to be “serious,” offenders can face fines and imprisonment for up to three years.
In a recent case, two individuals named Li were sentenced to six to eight months in jail for using their bank accounts to assist others in purchasing cryptocurrencies.
