The ruling allows for criminal prosecution of violators, who could face up to ten years in prison, and fines of up to $79,000 violating cryptocurrency market rules.

On Thursday, China’s Supreme Court declared that virtual asset transactions are “illegal fundraising,” clearing the path for legal action against the cryptocurrency market. While the People’s Bank of China and several other top-level agencies deemed crypto transactions illegal fundraising in September 2021, the court order explicitly classifies them as crimes and establishes the appropriate penalties.

Accused shall be prosecuted under Article 176 of China’s criminal legislation, which stipulates prison penalties of three to ten years and fines of RMB 50,000 (US$7,900) to RMB 500,000 ($79,000) for crimes involving substantial sums of money, according to Thursday’s verdict. According to the criminal legislation, less serious offenses will be tried with less than three years in prison and fines ranging from RMB 20,000 ($3,160) to RMB 200,000 ($31,600).

The change will take effect on March 1.

Authorities in China’s provinces are continuing to crack down on the sector. On Wednesday, the eastern province of Zhejiang, following Hainan and Inner Mongolia, announced raised electricity pricing for crypto mining.

Putin’s “special military operation” triggered a substantial financial uptick in various financial markets worldwide. The crypto market was not immune to the carnage, with the global cryptocurrency market valuation plummeting to as low as $1.5 trillion.

China’s Supreme Court recently determined that virtual asset transactions are ‘illegal fundraising,’ adding global tensions. As a result, the country’s crypto rules will be tightened even more.

Adding to the Fire

China’s supreme court announced that those found guilty of generating funds through token sales would face jail time, escalating the country’s cryptocurrency market crackdown. China’s move to crack down hard on cryptocurrency added gasoline to the fire under cryptocurrency market conditions as Apple, Microsoft, and other Big Tech firms lead the market selloffs. The impact of Russia’s military intervention was also felt in critical indices, with the Nasdaq 100 index dropping more than 20% for the first time in over two years.

Also, read – Fascinating Data about China’s Rejection of Metaverse Trademark Applications.

According to the statement, China’s highest court changed its interpretation of the Criminal Law to illegally use “virtual currency” to raise public funds. On March 1, 2022, the amendment will take effect.

Suspects will be tried under Article 176 of China’s criminal code, which stipulates prison penalties of around ten years and fines of $7,900 (RMB 50,000) to $79,000 (RMB 500,000) for crimes involving substantial sums of money. Less serious infractions are punishable by up to three years in prison and fines ranging from $3,160 (RMB 20,000) to $31,600 (RMB 30,000). (RMB 200,000).