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China’s Supreme Court has ruled that virtual asset transactions constitute ‘illegal fundraising’, paving the way for judicial prosecution of the crypto industry, according to CoinDesk.
While the People’s Bank of China and a host of other top-level agencies had declared that crypto transactions are illegal fundraising back in September 2021, the court ruling formally designates them as a crime and determines related punishments.
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 between RMB 50,000 (USD 7,900) and RMB 500,000 (USD 79,000) for crimes involving large sums of money. Less serious crimes will be prosecuted with under three years of prison and RMB 20,000 (USD 3,160) to RMB 200,000 (USD 31,600) in fines, according to the criminal law.
The amendment comes into effect on 1 March 2022. Chinese provincial authorities continue to crack down on the industry. The eastern province of Zhejiang announced increased electricity tariffs for crypto mining, joining Hainan and Inner Mongolia.
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