China’s Supreme Court deemed that virtual asset transactions now fall under illegal fundraising.
The amendment comes into play on March 1st. It rules that those prosecuted under Article 176 of China’s Criminal Law will face penalties depending on the amount raised.
Fundraising that exceeds 100,000 yuan (US$15,800) is categorized as a “large amount” which sets forth prison sentences between 3 and 10 years with fines between 50,000 Yuan (US$7,900) and 500,000 Yuan ($79,000).
Less serious fundraising will be prosecuted with no more than 3 years in prison, with a fine from 20,000 Yuan (US$3160) to 200,000 Yuan (US$31,600).
The new law accompanies China’s efforts to root out financial scams and money laundering by “punishing illegal fundraising crimes in accordance with the law and maintaining national financial security and stability”.