China Tights Punishments for Crypto Fundraising
The Supreme People’s Court of the People’s Republic of China has recently amended the legal norms on illegal attraction of funds, toughening criminal liability.
For raising funds in cryptocurrencies, the authorities have established a punishment in the form of imprisonment for a term of three years or more. Those found guilty will also be sentenced to a fine, whose amount depends on the term of imprisonment: from three to seven years (from 100,000 to 5 million yuan or $150,830-$791,870, or more than seven years: from 500,000 yuan or $79,187.
If the value of funds raised exceeds 100,000 yuans, it will be considered a “large amount.” More than 500,000 yuans is classified as “particularly large.”
Those who cooperate in the investigations and return the funds will receive a more lenient punishment. Aggravating circumstances will be an open criminal case against the accused or the fact of bringing him to administrative responsibility for such an act over the past two years.