China has previously made and has been making conscious efforts to kick all things crypto out of its region. In 2021, the Chinese government ousted an array of big Bitcoin mining giants from the country. Crypto exchanges and similar platforms were also forced to say goodbye. Since crypto is banned in the country, the government decided to include ‘virtual currency transactions’ into its newly amended illegal fundraising norms.
As per a recent report, the Supreme People’s Court of China issued the “Decision on Amending the Interpretation of the Supreme People’s Court on Several Issues Concerning the Specific Application of Law in the Trial of Criminal Cases of Illegal Fund Raising.” As part of this latest amendment, the government wants to reform and improve both the punishment and conviction standards of those who embezzle public deposits through illicit fundraising as part of this current legislation.
Furthermore, the updated statute is said to retain four key aspects of the crime: illegality, openness, inducement, and sociality. The most recent Interpretation includes online loans, virtual currency transactions, and financial leasing. All of this was in light of the global digitization that has occurred.
China addresses growing crimes in the virtual world
As the world undergoes digital metamorphosis, criminals have followed suit. Ill-doers trying to pocket easy money are found almost everywhere. To combat this, China seems to have included the aforementioned amendments. As a result, those who procured public funds in the name of virtual currency would fall under the radar of the government.
The modification authorized by China’s Supreme People’s Court further clarifies the punishment that will be imposed. Furthermore, each offense would be punished differently depending on the nature of the crime. The amendment was as follows:
“illegally absorbing public deposits or raising funds to defraud, it shall be sentenced to a fine in accordance with the standards for conviction and sentencing.”