Attorney Shao Shiwei | Four Major Misconceptions to Avoid When Acting as a USDT Card Agent in China

Author | Attorney Shao Shiwei

❓ Misconception 1: As long as the represented USDT card issuer is legitimate, there is no risk

Many content creators and key opinion leaders (KOLs), when promoting USDT cards on domestic and international social media platforms, state that the USDT card issuers they represent, such as Pokepay, THpay, and Cryditcard, are large listed companies holding authoritative licenses issued by overseas countries such as the United States and Canada. They display detailed due diligence conducted on the USDT card issuers to enhance persuasiveness, aiming to assure users that the USDT cards they promote are issued by legitimate companies, thereby encouraging safe purchases without risks of fund misappropriation or exit scams.

❓ Misconception 2: As long as after-sales service is provided well and customer relationships are maintained, there is no risk

Domestic USDT card agents, compared to overseas USDT card issuers, serve as domestic promoters and marketers of USDT cards; compared to users, they act as merchants, selling USDT cards and providing consulting as well as pre-sale, in-sale, and after-sales services.

For example, if the USDT card issuer implements a KYC verification mechanism requiring users to provide an overseas mobile phone number to receive verification codes, but mainland Chinese users lack overseas phone numbers, the USDT card agent assists users in contacting customer service to facilitate the process.

❓ Misconception 3: I only sell USDT cards and do not engage in buying and selling USDT for profit, so it is legal

USDT merchants who earn spreads by buying and selling virtual currencies face high transaction frequencies. Regardless of whether the spread charged is higher than or equal to the market price, they may inadvertently receive illicit funds, thereby involving relevant legal risks. Consequently, USDT card agents believe that since they only sell related physical or virtual cards and do not engage in OTC transactions, they face no legal risks.

❓ Misconception 4: As long as promotions are conducted on foreign social media platforms such as Telegram, Twitter (X), and YouTube, there is no risk

Some USDT card agents, considering the risks associated with virtual currency transactions in China and the sensitivity of selling USDT cards domestically, shift their promotional platforms from domestic channels such as WeChat Moments, Douyin, and Bilibili to foreign social media platforms like Telegram, Twitter (X), and YouTube.

Furthermore, to expand promotion, enhance influence, and reach more potential users, many USDT card agents establish Telegram groups, allowing users to communicate freely within the group. Even if the agent is offline, users can promptly seek assistance from other group members when encountering card-related issues.

In China, any business activities related to virtual currencies must strictly adhere to regulations such as the “September 4 Announcement” and the “September 24 Notice.” According to the September 24 Notice, “business activities related to virtual currencies are illegal financial activities,” and “no network business premises, commercial displays, marketing promotions, paid traffic redirection, or other services shall be provided for business activities related to virtual currencies.”

Overseas USDT card issuers, if licensed and authorized in their respective jurisdictions where issuing USDT cards is not prohibited, are naturally legitimate operating entities. However, this does not imply that the issuance, promotion, or sale of USDT cards within China is legal. Under the aforementioned September 24 Notice, acting as a USDT card agent in China may be regarded as providing commercial display, marketing promotion, and other services for business activities related to virtual currencies. Thus, the operational conduct of USDT card agents inevitably involves relevant legal and policy risks.

Nevertheless, given the significant market demand in China, many individuals remain eager to engage in this business, believing that maintaining good customer relationships and avoiding customer complaints will prevent issues. Some even shift promotions to overseas platforms and communicate with clients via encrypted software such as Telegram.

However, whether problems arise during users’ use of USDT cards, and whether such problems can be resolved, are beyond the control of USDT card agents and may not necessarily be solvable. For instance, if a USDT card deducts funds deposited by a user, and the issuer is located overseas, domestic users facing difficulties in asserting their rights may direct their grievances toward the domestic agent. In such cases, whether public security organs will assign criminal liability to the agent based on the September 24 Notice and other regulations remains uncertain.

Although USDT card agents merely sell the cards themselves and do not directly engage in virtual currency transactions, it cannot be guaranteed that all buyers purchase the cards solely for personal use. As Attorney Shao previously analyzed regarding scenarios where USDT card buyers might use the cards for transactions:

                                                                                                                                                    《Mastercard USDT Cards and UnionPay USDT Cards: Can They Guarantee Safe USDT Sales Without Frozen Bank Accounts?》

If a USDT card buyer is implicated in money laundering-related offenses, could the USDT card agent, as the provider of the instrument (the USDT card), be deemed an accomplice?

Additionally, the crime of illegally utilizing information networks is a frequently occurring offense. If a USDT card agent establishes a group chat, and users within the group employ USDT cards to defraud others or participate in money laundering, the group administrator may be suspected of committing this offense.

                                                                                                                                                                                     (Comment section of a video posted by a certain USDT card agent)

In China, since business activities related to virtual currencies are classified as illegal financial activities, the promotional conduct of USDT card agents carries a certain degree of legal risk, regardless of whether the USDT card issuer holds legitimate qualifications abroad. In other words, the legal risks faced by USDT card agents operating in China are not necessarily lower than those faced by USDT merchants.

Therefore, from a risk prevention perspective, we do not recommend that USDT card agents conduct any form of USDT card agency, promotion, or sales activities within China. Otherwise, relevant risk hazards will persist.