As the Chinese government continues to crack down on crypto-related activities, a growing number of citizens are reportedly taking part in questionable “side jobs” that involve facilitating crypto transactions for others. Despite two major crackdowns in 2017 and 2021, which targeted crypto exchanges and banks involved in crypto-related transactions, Chinese traders remain active in the digital currency market, with a thriving over-the-counter trade in coins, particularly Bitcoin and USDT, in 2023.
According to 21st Century Business Herald, recent reports show an increase in social media posts that solicit individuals to act as third-party crypto transfer accomplices, offering thousands of dollars a day as potential earnings. However, China’s Ministry of Public Security has cautioned that participating in such schemes is very likely to constitute the crime of assisting IT network fraud.
Legal and IT experts have warned that fixed-term jail sentences and fines could be imposed on those convicted of facilitating crypto trades for others. The risks associated with these activities center around potential violations of China’s updated criminal code. This code stipulates that providing assistance to others in using information networks to commit crimes, as well as offering related services like hosting servers and network storage, can be grounds for punishment.
The recent example of an individual named Geng highlights the potential consequences of participating in such endeavors. Geng allegedly processed nearly $1 million worth of crypto-related transactions through his personal bank accounts, earning up to $418 per transaction in “favor fees”. Consequently, Geng and his associates now face a range of charges. In another case, two individuals with the surname Li were sentenced to six to eight months in jail for using their bank accounts to help others purchase crypto.
Amid these developments, Chinese authorities claim that money laundering and fraud account for 55% and 21% of all cryptoasset-related crimes in 2022, respectively. Additionally, gambling and pyramid schemes represent smaller percentages of the total number of cases. Just last month, a group of stablecoin operators in Shanghai was detained by the police.
In light of these ongoing issues, Chinese citizens must weigh up the potential risks and rewards of participating in such schemes. As the possibility of severe legal consequences looms, the lure of lucrative side jobs may not be enough to appease the appetite for crypto-related profits, and individuals should be ever-mindful of the fine line between seemingly easy money-making opportunities and criminal activities in the evolving world of digital currencies.
Source: Cryptonews
