Learn about the seven new legal issues facing the cryptocurrency industry in one article

There has been a change in the number of people in the cryptocurrency industry who have come to consult us recently. Previously, it was basically the actual controllers and shareholders who came, but now more and more legal directors are rushing to the front. Basically, after asking about the company, they will ask: Sister Sa, I don’t have any legal risks, right? Today, I will answer your questions.

01

Q: I have a formal license overseas and my technical staff is in China. Is there any risk?

A: It is controversial. Currently, a leading expert stated at a seminar that if a company issues coins, has customers in China (even has roadshows and conference marketing to induce customers to buy), and conducts transactions in various coins, as long as domestic technical personnel have a basic understanding of what they are doing, then they are still suspected of illegal business operations.

Sister Sa’s view is more optimistic. I believe that if there are only technical personnel in China, operations and sales are all overseas, and the overseas operations are legal, then the company itself and its staff do not constitute a crime.

02

Q: I have done a good job of KYC screening, but there are still Chinese clients. What should I do?

A: Don’t expect Sister Sa to give you this answer: just turn a blind eye. No, if you find Chinese people involved in illegal activities such as ICO, you still have to remove them decisively.

03

Q: If I have a license for a national exchange in the European Union, can I promote it in the country?

A: Sister Sa believes that it is okay to promote the company itself, but not specific products. Please refer to the cigarette advertisement, "Crane dances on the white sand, my heart flies."

04

Q: Doesn’t Chinese law stipulate that there will be no punishment if the victim confesses himself?

A: From the perspective of criminal law theory, "the victim's promise" is indeed a super-legal reason to prevent illegal activities, so the perpetrator does not constitute a crime. But in practice, since I first handled a currency-related case in 2013, everyone who lost money would insist that they did not make any promises. Even if written evidence is produced, they would loudly refute that "they were deceived by the project party at the time." So, don't be lucky, the victim is likely to lie.

05

Q: If a legal director works for a virtual currency company, will he be considered an accomplice?

A: It depends on what the legal director does. If the legal director reviews contracts, regulates the behavior of business departments, establishes rules and regulations, and denies projects, then the essence of his or her actions is to reduce the company's legal risk rather than increase it, and he or she should be not guilty.

However, if the legal director also holds other management responsibilities, participates in high-level decision-making and does not raise any objections, he or she may become a co-principal offender in a criminal case.

06

Q: Is there any problem in conducting blockchain technology training in the country and promoting certain coins at the same time?

A: Technical training, as long as you have the training qualifications. For some currency platforms, if the currency is recognized both at home and abroad, generally there is no problem, but if you deceive others to buy or sell coins to do the opposite operation or make a profit, it is suspected of fraud. At present, there are similar cases in Zhejiang.

But Sister Sa discovered "investment agents" in some training sessions, and even training institutions intentionally or unintentionally matched transactions between investment agents and other members. I can say responsibly that the vast majority of criminal cases in the cryptocurrency circle in recent years are related to retail investors.

07

Q: When getting divorced, can I ask for the division of virtual currency?

A: Yes, but most women don’t know each other’s secret key, so it’s difficult to split it in practice.

Okay, that’s all for today. I suggest that my friends discuss blockchain and currency innovation with Sister Sa in advance, and don’t communicate after things have already been done. It is better to prepare for a rainy day than to mend the fold after the horse has bolted.