China's Crypto Crackdown Intensifies: Jail Time and Fines Loom from March 1st
China's crackdown on crypto further strengthened on Thursday, as the Supreme Court ruled that crypto transactions constitute “illegal fundraising.” The court declares crypto-fundraising illegal and determines jail time and fines for suspected persons. Amid primarily sensitive market China has intensified its crackdown on financial crimes, especially those involving cryptocurrency.
The new regulations, set to come into effect from March 1st, mark a significant escalation in Beijing's efforts to eliminate cryptocurrency activity within its borders. To be clear, the new bill announced on Thursday is an amendment to previous rulings, expanding its crypto crackdown. According to a recent work report presented at the Third Session of the Supreme People’s Court, the focus remains on stamping out financial risks and maintaining economic stability.
Stricter Penalties for Crypto-Related Activities
Thursday's ruling said that suspects will be prosecuted under Article 176 of China's criminal law, which stipulates prison sentences between three and 10 years and fines. If found guilty, individuals involved in crypto-related fundraising activities face severe consequences, highlighting the seriousness with which the Chinese government views these activities.
Implications of China's Crypto Re-Crackdown
This latest move by China's Supreme Court further clarifies the legal ramifications of engaging in cryptocurrency transactions and fundraising. It serves as a stark warning to those still operating within the crypto space in China, emphasizing the government's determination to enforce its ban. The expanded powers to jail those found guilty of raising funds through token sales signals a zero-tolerance approach.
Investors and industry participants worldwide are closely watching the impact of these regulations on the global crypto market. The increased scrutiny and stricter penalties are expected to further reduce crypto adoption in China and potentially influence regulatory approaches in other countries.