On Thursday, China’s strong stance on cryptocurrency took another step forward, with the country’s Supreme Court revising its judicial understanding of illicit fundraising to include digital currency transactions.
The Chinese Supreme Court updated its “Decision on Amending the Supreme People’s Court’s Interpretation on Several Issues Concerning the Specific Application of Law in the Trial of Criminal Cases of Illegal Fund Raising” decision.
Conviction and penalty for offences related to unlawful fundraising also improved as a result of the change. According to local media, the updated law included criminality, online lending, digital currency transactions. As well as financial leasing, and a few more items to the original list while keeping four of the bill’s original qualities.
The inclusion of cryptocurrency transactions in the new updated judicial interpretation would mean that anyone caught illegally soliciting funds from the public in the name of digital currencies would be prosecuted under the new law. On March 1, 2022, the new law will take effect.
China’s tough crypto policy is nothing new; during the last decade, the country has issued more than a dozen restrictions on various crypto-related activities. One of the most significant crackdowns occurred in 2021. When a group comprised of some of the country’s leading officials issued a blanket prohibition on all crypto-related operations.
All crypto transactions ruled unlawful in mainland China under the new restrictions. And overseas crypto exchanges barred from supplying any of their services. Since then, state officials have continued to enforce the policies, thereby eliminating centralised mining and trading from the country.