Attorney Shao Shiwei | Web3 Job Seeking | How to Seize Industry Opportunities While Mitigating Legal Risks?

Do Web3 jobs really carry risks? Why do I see so many job postings on the Maimai app...

The above is in fact a verbatim quote from a client seeking consultation, but it also reflects the concerns shared by a significant number of consultees.

On various recruitment platforms, one can find a large volume of Web3-related job postings—ranging from “Blockchain Product Manager” and “Web3 Operations” to “Smart Contract Engineer” and “Overseas Remote Positions.” The range of positions is diverse, and compensation levels are generally higher than those in the traditional internet industry.

At the same time, when job seekers search for related information online, they encounter a markedly different narrative:

"Domestic virtual currency-related business activities constitute illegal financial activities," and "individual trading is not protected by law."

The contrast between the "active recruitment in practice" and the "strict regulatory control at the policy level" often causes confusion.

Some job seekers may therefore question: If policies explicitly prohibit such activities, why are so many Web3 companies still hiring? Do these positions truly carry risks?

In our daily practice, such inquiries arise with high frequency. Job seekers often experience uncertainty before or after signing employment contracts, or shortly after onboarding. Factors such as the employer entity being located overseas, distributed work arrangements, and the lack of protection for labor relationships under domestic labor law all exacerbate their concerns.

This job-seeking anxiety is not unfounded. Among all Web3-related positions, the area most frequently mentioned and subject to the greatest risk controversy is virtual currency exchanges. Regardless of the specific position applied for at an exchange, job seekers almost invariably ask the same question—

Is there any risk in working at a virtual currency exchange? Is it advisable to accept such a position?

This is one of the most frequently asked questions in Web3-related job-seeking consultations.

From an industry distribution perspective, many leading virtual currency exchanges (such as Binance, OKX, and Huobi) are indeed continuously recruiting employees from within China. The primary reasons include: 

• First, the founders of these platforms are often of Chinese nationality or Chinese-speaking background, providing natural advantages in team management and communication efficiency; 

• Second, China has a rich reserve of internet technology and operational talent, with relatively controllable costs; 

• Third, although policies explicitly prohibit virtual currency-related activities, crypto assets still have a vast Chinese-speaking user base globally. Platforms require personnel familiar with the Chinese market and user habits to support operations and services.

For this reason, job seekers see numerous job postings for exchange positions on public channels, covering functions such as technology, product, marketing, operations, and business development. In our practical work, we have indeed received numerous consultations from employees in these roles. However, the issue of risk must be viewed objectively. 

Compared with other Web3 platforms, crypto asset exchanges generally face higher overall criminal risk. In the multiple cases our team has handled in recent years, some exchanges have been accused of suspected "operating a casino," which constitutes the primary focal point of dispute when judicial authorities determine the nature of exchange activities such as contract trading, token issuance, and commission rebates. 

However, legal risks vary significantly across different job roles. The boundaries of legal liability for positions in technical development, product design, and marketing promotion cannot be generalized; they must be comprehensively assessed based on job responsibilities, business authority, and the actual degree of participation.

In addition to exchanges, the Web3 ecosystem encompasses multiple specialized sectors, such as public chain infrastructure, NFT digital collectibles, identity and social networking, Web3 gaming, tools and service platforms (e.g., wallets, on-chain data analytics), and information media. Overall, trading-oriented platforms (such as on-chain lending, token issuance, and matching services) carry the highest risk;

whereas the risks associated with other types of platforms depend on their business models and capital liquidity. For instance, we have handledcases involving personnel from overseas public chain projects, Web3 wallet engineers, information platforms, and Web3 social platformsand other Web3-related criminal matters. However, for practitioners in specific job roles, the level of risk and the extent of criminal liability are not identical.

I understand that working in trading-related roles carries high risk. Can I just work for six months to a year and leave if the situation looks unfavorable?

This is one of the most common questions raised by job seekers during consultations. From everyday experience, this approach may seem logical—"As long as I withdraw in time, I will be fine." However, from a legal perspective, this assessment is inaccurate. Here, Attorney Shao wishes to highlight a crucial concept:"Statute of Limitations for Prosecution"。

Article 87 of the Criminal Law of the People's Republic of China provides the following regulations regarding the statute of limitations for prosecution:

Article 87　[Term of Statute of Limitations for Prosecution] No prosecution shall be initiated after the expiration of the following periods:

(1) Where the statutory maximum penalty is fixed-term imprisonment of less than five years, the limitation period is five years;

(2) Where the statutory maximum penalty is fixed-term imprisonment of not less than five years but less than ten years, the limitation period is ten years;

(3) Where the statutory maximum penalty is fixed-term imprisonment of not less than ten years, the limitation period is fifteen years;

(4) Where the statutory maximum penalty is life imprisonment or the death penalty, the limitation period is twenty years. If prosecution is deemed necessary after twenty years, approval must be sought from the Supreme People's Procuratorate.

The limitation period for prosecution is calculated from the date the crime was committed; if the criminal conduct is continuous or ongoing, it is calculated from the date the criminal conduct ceased. Taking several types of offenses commonly encountered in our practice as examples:

Therefore, for practitioners in the Web3 industry, "short-term employment to avoid risk" is not a viable safety strategy. The key to assessing risk lies not in the duration of employment, but in the nature of the business activities involved and the individual's role and position. This is an issue that every job seeker must clearly evaluate before accepting employment.

I spend most of my time abroad, working for a Web3 platform, and only occasionally return to China. Does this mean I face no risk?

Many practitioners reside overseas year-round and work for overseas Web3 platforms. However, due to family ties in China, they may occasionally return to visit relatives. Consequently, these Web3 practitioners often believe that, since they are located abroad and working for foreign platforms, they need not consider domestic legal risks.

However, under the principles of "personal jurisdiction" and "territorial jurisdiction," as well as the broad interpretation of jurisdiction in Web3-related criminal cases, the situation is often not as optimistic as practitioners might assume. The provisions of Articles 6 and 7 of the Criminal Law are as follows:

Article 6 [Territorial Jurisdiction] This Law shall apply to all crimes committed within the territory of the People's Republic of China, except as otherwise provided by law.This Law...If either the act or the consequence of a crime occurs within the territory of the People's Republic of China, the crime shall be deemed to have been committed within the territory of the People's Republic of China.

Article 7 [Personal Jurisdiction] Where a citizen of the People’s Republic of China commits outside the territory of the People’s Republic of China an offense prescribed bythis Law, this Law shall apply; however, if the maximum punishment prescribed bythis Lawis fixed-term imprisonment of not more than three years, prosecution may be waived.this LawWhere the maximum statutory penalty is fixed-term imprisonment of not more than three years, criminal liability may be waived.

In other words, as long as the conduct or its consequences have a substantial connection with the territory of China, or the perpetrator holds Chinese nationality, the Criminal Law of China may still apply.

In cases involving the Web3 industry, such “connections” often manifest in the following circumstances:

• Although the platform is established overseas, it effectively provides services to global users (including users in mainland China who access the platform via VPNs to bypass internet restrictions);

• Personnel, while within the territory, continue to log in, maintain, and communicate regarding business operations using computers or servers;

• Project marketing content is primarily in Chinese, and the user base is concentrated in the Chinese region.

Once the aforementioned circumstances arise, judicial authorities will typically deem that the project and individuals involved have a "substantial connection" with China, thereby establishing territorial or personal jurisdiction. Consequently, even if practitioners are located overseas, the fact that the project has significant interactions with Chinese users does not automatically preclude the possibility of being held legally accountable.

For Web3 practitioners, the key to determining "whether it is safe" lies not in the location of their office, but in: whether the project touches upon business areas prohibited by Chinese law, and the extent of an individual's participation and decision-making authority within it.

So many friends around me work on Web3 platforms; does this mean the actual risk is low? Am I likely to be fine as well?

In our practical consultations, this is almost invariably the question raised by every job seeker after hearing the risk analysis.

Their concerns are typically framed as follows:

"Many of my friends work on Web3 platforms; some have been doing so for several years without any issues. Since everyone else seems fine, does this indicate that the risk is actually not significant?"

From an empirical perspective, this mode of judgment is common but inaccurate. In the realm of criminal risk, "not having been prosecuted thus far" does not equate to "having no legal risk." In handling Web3-related cases, we have indeed represented numerous platforms that had operated stably for six or seven years with mature business models, which were later subjected to criminal investigation for alleged crimes such as illegal business operations and operating casinos due to specific business segments. In other words, the manifestation of risk often lags behind the accumulation of conduct, rather than being characterized as such at its inception.

Risk is not evenly distributed across the entire industry but is concentrated in certain specific business types and roles. Therefore, when assessing risk, one cannot rely solely on the industry appearing "generally safe," but must return to examine the individual's role, authority, and the substantive nature of the business activities.

Furthermore, it must be recognized that while the Web3 industry develops extremely rapidly, the understanding and response pace of judicial authorities are relatively lagging. The fact that certain business models were not scrutinized in the early stages does not mean they will not be brought within the scope of regulatory or criminal evaluation in the future. 

Judging risk solely based on the fact that "no one has gotten into trouble in the past" is akin tousing an old map to find a new route—seemingly secure, but in reality lacking any reference value.

From the perspective of risk prevention and control, a more reasonable approach is:

Prior to onboarding, thoroughly understand the platform’s business structure and the boundaries of your role, and seek professional consultation and conduct risk assessments where necessary, rather than inferring that your position is necessarily safe based on the assumption that “others have not encountered issues.”

How can one seize opportunities in the Web3 industry while effectively mitigating potential legal risks?

In the rapidly evolving Web3 industry, the level of risk invariably depends on an individual’s role and conduct within a project. Job seekers should clearly understand the platform’s business structure, the boundaries of their role, and their scope of authority before onboarding.

Platforms of different types and roles with different functions entail vastly different profiles of returns and risks. Only by fully recognizing these risks, and aligning one’s professional background and career planning with a path commensurate with one’s risk tolerance, can one proceed steadily in the industry.

If you are currently working in the Web3 sector or preparing to enter this industry, and wish to obtain a more targeted and actionable assessment of the risks associated with your role, you may scan the QR code below and reply with “Web3 Job Consultation.” We will provide personalized risk diagnostics and compliance recommendations based on your specific circumstances.