The Shanghai People's Court in the Pudong New Area examined a significant case involving illegal cryptocurrency transactions amounting to 6.5 billion yuan facilitated through domestic shell companies.
Sentences for Illegal Tether Exchanges
The court sentenced two men, Yang and Xu, for organizing Tether exchanges worth 6.5 billion yuan via local shell companies. The prosecution highlighted their use of a mechanism to evade regulation by splitting currency exchanges into two independent operations. Gao Yongfeng, a senior partner at Shanghai law firm, noted, "This illegal exchange mechanism allows for evading regulatory compliance."
Ongoing Crackdown on Cryptocurrencies in China
Despite the 2021 ban on cryptocurrency trading in China, the case illustrates the persistent underground demand for remittances using stablecoins. Current government actions focus on combatting capital flight based on cryptocurrencies and strengthening strict regulatory oversight. Tether (USDT) currently holds a stable price of $1.00 despite the case's publicity.
Impact on Future Cryptocurrency Regulation
According to Coincu research, law enforcement actions like those against Yang and Xu could aid in future technological and policy adaptations. The intensification of regulatory measures aims to dismantle illicit financial frameworks connected globally through cryptocurrencies.
The court proceedings in Shanghai illustrate China's ongoing efforts to intensify control over cryptocurrency operations and combat illegal financial activities.
