A recent article has gone viral and many digital coin holders are panicking, but a quick look at the article has obvious loopholes. The latest judicial interpretation referred to in this article actually targets illegal fundraising, and the interpretation adds a crackdown on non-sucking behavior such as P2P, virtual currencies, and pension scams. The general trading of cryptocurrencies by individuals who are not involved in illegal fundraising, but merely general trading, does not constitute the elements of a sentence of 10 years or more.
The Chinese Supreme Court has been trying to ban cryptocurrency transactions on Chinese soil for some time now. Last week the Chinese body made a tougher decision by passing a law, which comes into force on March 1, and makes any type of transaction with cryptocurrencies illegal.
People caught transacting with digital currencies can face up to 10 years in prison and pay a fine of up to $80,000.
New York University law professor Winston Ma claims that this is the first case where cryptocurrency transactions are entered into the criminal law system in a country.
Fines of up to 80 thousand dollars for making a transaction with cryptos
The passed legislation refers to the term “cryptocurrency transactions” broadly, without specifying in detail what actions can be considered illegal. This is a serious problem since it opens interpretation for the government to consider everything that involves cryptocurrencies illegal. According to the Supreme Court, the new law aims to punish illicit enrichment, in addition to maintaining the security and economic stability of the nation.
With this China runs out of cryptocurrencies?
The answer to that question is simple: No. Despite strong measures to prevent citizens from buying, mining, and trading cryptocurrencies, the Chinese government is investing in the creation of its own digital currency, the yuan.
The digital Yuan was first tested during the Winter Olympics and the big difference is that it is not a decentralized currency, but a centralized one. The country has also been testing ways to transact cryptocurrency for some time and trying to get the population to use the resource.
It seems that the country’s plan is to invest in a centralized and government-monitored crypto model.
Source: Scmp