China’s Supreme Court Rules Against Illegal Crypto Fundraising

China last year implemented a cryptocurrency exodus on the mining and trading industry. The move made a devastating impact on Bitcoin, effectively taking out more than 50% of hashrate contribution. The miners in the region were attracted to the country due to the cheap electricity prices and real estate dispensability. However, the Bitcoin mining community was able to make a full recovery within 6 months period.

The Chinese authorities did not stop at cracking down on the crypto mining industry but proceeded to ban crypto-related marketing and influencer accounts on the local social media sites. Local media outlets recently reported that Chinese officials have decided to persecute the cryptocurrency defaulters under the criminal code of conduct.

Criminal Law Ammendment

The highest court of China has recently added amendments to their criminal code of conduct to make room for prosecuting crypto traders. According to the new edits, the people found guilty of collecting funds from the citizens of the region through token sales can face jail time and heavy financial penalties. With this new amendment, China has effectively criminalized crypto trading in the region.

However, the strict stance of the Chinese government on the matter is not new. The government has introduced strict sanctions on cryptocurrency fundraising since 2017. With the recent amendments, the defaulters will be tried in the civil courts under criminal laws with a possibility of getting 3 to 10 years behind bars and up to 500,000 yen or $79K.

China’s Ban on All Crypto-Based Transactions

The Central Banks of many countries like Spain, India, and Russia are holding the fort of traditional financial infrastructure against the advance of cryptocurrency trading. However, the Central Bank of China was able to successfully ban all crypto-related transactions in the region last year in September putting the nationwide crypto exodus into effect.

According to cryptocurrency experts, the ban of Bitcoin mining in China has benefited US businesses. The exiled mining corporations from China took refuge in the USA increasing her global hashrate contribution to 35% as per the data margins shared by Cambridge Bitcoin Electricity Consumption Index.