Research

Mankun Research

Read practical English analysis of Web3, AI, digital assets, fintech, regulation and cross-border legal issues from Mankun Law Firm.

170 English publications

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Investor Defrauded of RMB 500,000 in Virtual Currency Investment: Mankun Lawyers Assist Client in Successfully Reporting the Case and Securing Criminal Investigation Initiation

The Mankun Law Firm legal team represented a client in a case involving fraud in virtual currency investment. The client invested over RMB 500,000 to purchase project tokens, but the project collapsed and the token value dropped to zero within a short period. In the early stages, the case faced obstacles in civil case initiation, suggestions to seek jurisdiction elsewhere when reporting the crime in a different location, and repeated refusals by local police stations to accept the report. Ultimately, after reorganizing the facts and evidence, the lawyers assisted the client in prompting the public security organs to formally initiate a criminal investigation, resulting in the issuance of a Notice of Case Initiation. Situations similar to this are very common in the crypto assets industry, but victims often find it difficult to complete the process of reporting the crime and initiating an investigation. This article aims to analyze why cases involving fraud in virtual currency investments are difficult to initiate, where the difficulties lie, and why a breakthrough for criminal investigation initiation was achieved in this instance.

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What Should Foreign Trade Merchants Do If Their USDT Receipts Are Frozen?

In recent years, stablecoins have gradually evolved from tools within the crypto community into broader scenarios for cross-border payments and trade settlement. The European Union has incorporated the issuance of crypto assets, trading services, wallets, and anti-money laundering obligations into a unified regulatory framework through MiCA; following the implementation of Hong Kong’s Stablecoin Ordinance on August 1, 2025, the issuance of fiat-backed stablecoins in Hong Kong has become a licensed activity; and the United States passed the GENIUS Act targeting payment stablecoins in 2025. Regulatory advancements do not imply that all stablecoin payments are secure, but they do encourage more overseas clients, payment service providers, and trade intermediaries to treat stablecoins such as USDT and USDC as an

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Hong Kong OTC Money Laundering Case: Why Was a Heavy Sentence Imposed for Using Borrowed Accounts to Withdraw Cash and Purchase USDT?

The key takeaway from this Hong Kong OTC money laundering case is not that “buying USDT leads to imprisonment,” but rather: when funds must pass through another person’s account, involve cash withdrawals, OTC crypto asset purchases, and transfers to overseas wallets to complete the transaction, it ceases to be merely a technical pathway and becomes a chain of funds requiring legal interpretation. Hong Kong’s commitment to developing Web3 remains unchanged. Virtual asset trading platforms, stablecoins, tokenized assets, wallets, and custody services may all become part of Hong Kong’s financial market. However, Hong Kong’s development of Web3 does not equate to permitting virtual assets to serve as high-speed channels for criminal proceeds. The more new financial instruments are incorporated into the regulatory framework, the more they must be subject to identity verification.

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How Do Public Security Organs Investigate Criminal Cases Involving Virtual Currencies?

Many people hold a misconception regarding Hong Kong’s Web3 policies: because Hong Kong supports the development of virtual assets, buying and selling cryptocurrencies, engaging in over-the-counter (OTC) transactions, and conducting stablecoin business in Hong Kong are all legal and safe. This statement is only half correct. Hong Kong is indeed developing its virtual asset market and creating institutional space for businesses such as trading platforms, stablecoins, custody, and payments. However, what Hong Kong encourages is financial innovation that is licensed, equipped with internal controls, implements customer identification, and monitors suspicious transactions, rather than providing a faster channel for the outbound transfer of funds of unknown origin. A recent case adjudicated by the Hong Kong District Court serves as an apt illustration of this boundary. According to Hong Kong media reports, the Hong Kong District Court ruled on June 23, 202

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Global Crypto Payment Compliance Map · Introductory Part II | Canadian MSB: Why It Is More Suitable for Teams Committed to Long-Term Payment Operations?

This is the second article in the introductory series: Canadian MSB.

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Attorney Shao Shiwei | Investing in Virtual Currencies: How Ordinary Individuals Become Gradually Entangled in Pyramid Scheme Crimes

Abstract: You merely invested in a Web3 project and invited friends and relatives to join in order to make some money. After the project collapsed, you reported the case to the police, only to be criminally detained yourself—this is not a story, but a real occurrence. This article will explain: why you may not perceive your actions as operating a pyramid scheme, yet the law may deem you an organizer; which roles (team leaders, lecturers, agents) are most susceptible to liability; and what you should prioritize doing at present. If you or your family members are facing similar circumstances, after reading this, you will at least understand: what lies ahead and what type of attorney you should engage. Keywords: Crime of organizing and leading pyramid scheme activities; virtual currencies; criminal defense; release on bail pending trial; defense for mitigation of punishment Special Disclaimer: This article is

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Attorney Shao Shiwei | AI Relay Station Operator Criminally Detained: Is Operating an API Relay Actually Illegal?

Abstract: Have your family members or friends been taken away by the police for operating an AI relay station? Or are you currently engaged in the API interface business, with a vague sense that something is amiss? This article explains in plain language: reverse scraping, reselling free quotas, and reselling user conversation logs are the three scenarios most likely to lead to legal trouble. You will clearly understand what you may face next—37 days of criminal detention, the possibility of release on bail pending trial, and the one thing you should do right now. Keywords: Crime of illegal business operations, Crime of infringing upon citizens' personal information, Crime of refusing to fulfill obligations for information network security management, Release on bail pending trial, AI relay station Special Declaration: This article is an original work by Attorney Shao Shiwei and represents only the author's individual

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Attorney Shao Shiwei | What Legal Risks May Chinese Developers Face When Developing Third-Party Tools for the Polymarket Prediction Market Platform?

Abstract: Are you or your friends developing trading tools, data analytics websites, or news aggregators for Polymarket? Although this platform holds overseas licenses, your tools do not handle user funds, and its users are located abroad, be cautious: under Chinese law, this may be deemed as providing technical support to gambling websites. This article clarifies the three most common pitfalls: assuming that if the platform is legal, your activities are also legal; assuming that not handling funds means there is no risk; and assuming that having users abroad ensures safety. You will see that such conduct may involve the crime of operating a casino and the crime of aiding information network criminal activities, as well as what steps to take now. Keywords: Accomplice to the crime of operating a casino, compliance of third-party tools, prediction market platforms, crime of aiding information network criminal activities, risks of Web3 entrepreneurship targeting overseas markets

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Attorney Shao Shiwei | The Presence of Referral Rewards in Virtual Currency Projects Does Not Equate to the Crime of Pyramid Selling—The Key Lies in the Source of Funds

Abstract: Have you or your family members been detained due to referral rewards in a virtual currency project? Do not panic. The key is to determine the source of these reward funds—if they derive from genuine revenue such as NFT sales or service fees collected by the platform, it may constitute only an administrative violation and not the crime of pyramid selling; if they derive from the principal contributions of new users (a Ponzi scheme structure), it constitutes a crime. This article uses a real case to teach two self-assessment methods: What can tokens be used for besides resale? Can one participate for free without purchasing tokens? Finally, it outlines four points for legal defense. After reading, you will know what to discuss with your lawyer next. Keywords: Crime of organizing and leading pyramid selling activities, team-based remuneration, entry fees, multi-level rebates, Ponzi structure Body:

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Through the Lens of Nevermined: AI Payments Enter the Realm of Genuine Commerce

It is not about equipping AI with wallets, but rather transforming machine invocations into discrete transactions.

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OpenClaw’s Compliance Dilemma: From Permissions to AI Taxation, Where Should Industry Self-Regulation Head?

The logic of compliance, taxation, and governance for OpenClaw-like AI Agents in the Web4 era.

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From Trading to Asset Management: How Crypto Funds Can Choose the Right Structure?

Six Mainstream Models: A Comprehensive Guide to Selection

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Advanced Crypto Payment Licensing: Why El Salvador’s DASP Is a Preferred Choice

Resolving the Account Dilemma for Stablecoin Global Expansion: “Can You Secure Umbrella Accounts?”

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Attorney Shao Shiwei | Is Third-Party Repayment of JD Baitiao Illegal? The Criminal Risks Behind Discounted Repayment of Online Loans

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add: sswls66. Recently, I received a consultation from a lady. Her anxious voice came through the phone: “Attorney Shao, the police have taken my child away. They say it’s because he was ‘milking perks’ by providing third-party repayment for JD Baitiao on Xianyu. Is this serious?” According to the lady’s description, her child, Xiao Li, was originally an ordinary white-collar worker at a company. However, due to the impact of AI on the industry, the company’s overall economic performance deteriorated, resulting in his layoff shortly after joining. Because

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Selling USDT on Xianyu to Earn the Spread and Arbitraging via “Wallets”: Why Are Bank Cards Frozen?

Do not wait until you are imprisoned to understand the weight of “compliance.”

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Global Prediction Platform Polymarket Launches Chinese Version, Drawing Attention: What Are the Risks for Domestic Participation?

What risks do ordinary users and promoters respectively face? This article clarifies the criminal liabilities behind "prediction markets."

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How Do Cryptocurrency Exchanges Exploit Token-Issuing Projects?

A Guide for Web3 Entrepreneurs to Avoid Being Exploited

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Guide to Licensing for Crypto Payment Enterprises: U.S. MSB and State MTL Applications

It is not a matter of scale, but whether the business activities have fallen within the scope of state law regulation.

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CRS-Style Taxation in the Crypto Sphere: Three Practical Recommendations for Crypto Participants

The "Wild West" era of Web3 is coming to an end.

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The 'Implementation' of Mainland China’s Stablecoin Regulation and the 'Launch' of Digital Renminbi 2.0

Web3 practitioners are facing newly demarcated boundaries for their operations.

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Understanding Through Three Cases: Why Crypto-Related Cases Stall at the 'Civil Remedy Stage'

An Analysis of the Remedial Dilemma in Crypto-Related Disputes

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Is Dubai Surprisingly the Optimal Compliance Solution for Global Real-World Assets (RWA)?

Compliant, available for public offering, and accessible to retail investors

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Success Stories | Attorney Gao Mengyang’s Team Secures Favorable Outcomes in Two Criminal Cases Involving Cryptocurrency Exchanges

This case fully demonstrates the professional competence of Attorney Gao Mengyang’s team in handling novel criminal cases involving virtual asset exchanges.

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Urgent Self-Review for Web3 Developers: Criminal Liability Has Been Established for Technological Circumvention-Type Copyright Infringement

Compliance is no longer a remedial measure but a core architectural element that must be designed in from the outset.

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Hong Kong Virtual Asset Asset Management Compliance Guide: A Comprehensive Analysis of Type 1, 4, and 9 License Applications and Upgrades

Based on the SFC regulatory framework, this article provides an in-depth breakdown of key application points and compliance practices.

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Building Sweeps and Forced Phone Inspections to Transfer Crypto? The Sensationalism in the Crypto Community Is Outrageous!

Do not believe rumors; do not spread rumors!

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Attorney Shao Shiwei | The Qualification Conundrum of Illegally Obtaining Virtual Currencies: Judicial Divergence Between Property Attributes and Data Attributes (Part I)

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add: sswls66. In the field of criminal justice, the legal characterization of virtual currencies is gradually revealing significant practical and theoretical dilemmas. In judicial practice, for cases involving virtual currencies with highly similar modus operandi, different adjudicatory bodies often reach significantly divergent conclusions, creating a reality of "different judgments for similar cases." This not only results in a lack of uniform standards for sentencing but may also directly affect the boundary between criminal and non-criminal conduct, thereby undermining the stability and predictability of criminal adjudication.

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Attorney Shao Shiwei | Interpretation of the Latest Policy: The People’s Bank of China Convened a Coordination Mechanism Meeting to Crack Down on Virtual Currency Trading and Speculation

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. On November 28, 2025, the People’s Bank of China, jointly with the Ministry of Public Security, the Supreme People’s Court, the Supreme People’s Procuratorate, and other departments totaling thirteen, convened the “Coordination Mechanism Meeting to Crack Down on Virtual Currency Trading and Speculation,” reiterating that business activities related to virtual currencies constitute illegal financial activities and emphasizing that a high-pressure stance will be maintained in cracking down on various forms of virtual currency trading and speculation. Coincidentally, the following day, Mankun Law Firm and Beijing Dongwei (Zheng

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Attorney Shao Shiwei | How Should an Employee’s Unauthorized Modification of System Data for Monetization Be Characterized? — The Dispute over the Legal Characterization of Theft, Embezzlement by Reason of Position, and Illegally Obtaining Data from Computer Information Systems (

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add: sswls66. In internet companies (especially gaming platforms), personnel in technical, operational, and other roles who have direct access to system interfaces, backend data, and internal administrative privileges may, once they engage in unauthorized operations or misconduct driven by profit, rapidly evolve into typical scenarios involving suspected duty-related crimes. This is not uncommon in judicial practice. However, in judicial practice, acts such as “modifying data” and “reselling for cash” may, depending on the region, the handling personnel, or even between the first and second instances of the same case, result in completely different legal characterizations: theft, embezzlement by reason of position, or illegally obtaining data from computer information systems?

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Attorney Shao Shiwei | Legal Red Lines and Compliance Survival Guide for GEO Service Providers

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Behind the Surge in real-world assets (RWA): Opportunity or Scam?

Always remain vigilant against promises of high returns.

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Compliance Guide for the Issuance of Utility Tokens

Whether a token is utility or security is not determined by the whitepaper

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Lawyer Shao Shiwei | Multiple Real Cases: Understanding the Current Judicial Status of Jurisdiction in Web3 Criminal Cases

Special Declaration: This article is an original work by Lawyer Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add: sswls66. “Personal jurisdiction” and “territorial jurisdiction” are fundamental concepts in China’s Criminal Law. However, for practitioners in the Web3 industry, these are often the most easily overlooked aspects and represent the greatest blind spots in their understanding. This article speaks through harsh, real-world cases, aiming to remind Web3 entrepreneurs and practitioners not to rely on luck due to “survivorship bias.” As long as you retain Chinese nationality while participating in a Web3 project, or if the project itself

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Essential Reading for USDT Merchants: Risk Identification and Compliance Guidelines for Illegal Business Operations

In the world of Web3, technology may be at the forefront, but the law must not remain a blank slate.

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Official Authorities Define Stablecoins for the First Time: The Illusions Surrounding Stablecoins Can Now End

Stablecoins are a form of virtual assets.

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What Are the Truly Profitable Niches in Crypto Payments?

Adopting the most pragmatic perspective to clarify the true flow of profits in crypto payments.

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Success Story | Lawyers Deng Xiaoyu and Gao Mengyang Secure a Revised Judgment on Appeal in a Case Involving a Crypto Asset Exchange Accused of Operating a Casino

This case is the only one among the numerous appeals in the series of cases involving the crypto asset exchange accused of operating a casino where the judgment was revised on appeal.

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The Legal Characterization of Smart Contracts: Tools, Contracts, or Judicial Evidence?

It is essential to affirm their value while also confronting the conflicts and challenges they pose to the existing legal framework.

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Web3 Cross-Border Payments: Money Laundering Risks Behind Efficiency Gains

"Anti-money laundering" has never been a set of restrictive rules; rather, it is an opportunity to rebuild the trust system.

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Compliance Strategies for Hong Kong Crypto Payment Institutions During the 'Unlicensed Vacuum Period'

Combining a Type 1 License with a VATP Omnibus Account to Establish an Operational Pathway

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Peking University Sharing | Blockchain Games Going Global and Legal Compliance

Lecturing on Web3 at Peking University

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Industry Positive Development: Shanghai Courts Issue Guidelines on 'Closed-Loop Disposal of Virtual Currencies in Criminal Cases'

The more standardized, the more compliant.

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It Is Already 2025: Where Should Crypto Enterprises Apply for Licenses?

Applying for a license is a technical endeavor; choosing where to apply is an even more specialized task.

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Which Blockchain Companies Are Worth Investing In?

The current situation is somewhat awkward.

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The Hidden Pitfalls of Crypto Payments: Why You Must List 'Restricted Jurisdictions'

True globalization is not about being accessible to everyone, but about being used in compliance with the law.

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When AI Learns to Spend Money, How Should We Respond?

Trust in AI

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PayFi in the UAE: An Analysis of Business Compliance Risks

Identifying risks and providing pathways.

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Draft Polish Crypto-Assets Act Passed: Regulatory Upgrade and Significant Increase in Licensing Thresholds!

The passage of the draft Polish Crypto-Assets Act marks a new phase in the country's crypto regulatory framework!

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Attorney Shao Shiwei | How Is the Provision of 'Technical Support' to Gambling Websites Determined? Which Positions May Seek Non-Prosecution?

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Custody in a Decentralized World: From Legal Safeguards to Smart Contract Innovation

Custody mechanisms effectively reduce the probability of fraud and minimize transactional disputes!

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In 2025, How Do Chinese Courts View Cases Involving the Trading of Virtual Currencies?

Illegality Does Not Equate to Non-Adjudicability

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A Preliminary Discussion on the Practice and Risks of Crypto Asset Management Businesses, Starting from MiCA-Licensed Entities

The promulgation of MiCA has brought these innovative businesses under a unified regulatory framework for the first time.

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Qian Zhimin Pleads Guilty in Court! Major Breakthrough in Cross-Border Recovery for Lantian Gerui; Victims Urged to File Claims Promptly

Please complete the form as soon as possible!

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Illegal Absorption of Public Deposits? Fundraising Fraud? How Can NFT Entrepreneurs Save Themselves?

Hidden Criminal Traps Beneath the Cultural Boom

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Web3 Projects’ “Amulet”: The Legal Documents That Cannot Be Overlooked

The First Firewall for Web3

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Attorney Shao Shiwei | Is It Lawful to Establish a Web3 Studio to Provide Market-Making (Liquidity) Services for Project Teams?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 The "September 4 Announcement" of 2017 and the "September 24 Notice" of 2021 have clearly stated that initial coin offering (ICO) financing is prohibited within mainland China, and virtual currency trading is deemed an illegal financial activity. This is widely understood within the industry. However, in practice, a large number of Web3 studios remain active in the market, conducting business centered around virtual currencies and Web3. In his daily practice, Attorney Shao frequently...

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Tokenization of Equity in Non-Listed Companies: Feasibility, Implementation, and Structure

Three Structures for Equity Tokenization + A Practical Guide to Regulation in Four Jurisdictions

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"RWA Is Not as Simple as Issuing a Token" | Five Major Pitfalls Enterprises Must Avoid When Engaging in RWA Projects

As the concept of RWA (tokenization of real-world assets) gains popularity, more and more enterprises are considering: Can I also move my assets on-chain? Can I raise funds, provide liquidity, and attract global investors? However, the reality is that RWA is far from simple. From asset structure design, legal compliance, regulatory filings, to smart contract deployment and token issuance and circulation, this is not a "token issuance" project, but a systematic engineering effort spanning both on-chain and off-chain domains. This article will help you clearly understand: The five key issues enterprises must address when undertaking RWA projects; What challenges lawyers can help you resolve at each step; Why these pitfalls must be avoided sooner rather than later. Pitfall One: Assets do not exist merely by claim; you...

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Success Story | Attorney Mao Jiehao’s Team Secures a Favorable Retrial Judgment in a Crypto Mining Rig Investment Dispute

Recently, the team led by Attorney Mao Jiehao of Mankun Law Firm successfully represented a client in a crypto mining rig investment dispute. After facing unfavorable outcomes with dismissals at both the first and second instances, the case was ultimately retried and reversed by the Provincial Higher People's Court, which upheld our client’s claims and recovered significant investment losses. In this case, the investor had committed substantial funds to a crypto mining rig project but failed to receive the agreed-upon returns or principal repayment. The courts of first and second instance had dismissed the claims on the grounds that “the relevant investment activities involved virtual currencies, and thus the losses should be borne by the investor,” leaving the case at an impasse. Since the first instance, Mankun Law Firm’s Attorney Mao Jiehao’s team served as counsel...

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Perpetual Contracts Do Not Constitute Gambling Under Criminal Law

In cases involving crypto asset exchanges handled by our team of lawyers, investigators often describe perpetual contracts in interrogation records as a gambling game of guessing price movements, aiming to characterize exchange personnel as guilty of the crime of operating a casino. Consequently, subsequent case-handling personnel, relying solely on these records, may mistakenly perceive perpetual contracts as games of chance similar to guessing big or small. In discussions with peers on whether perpetual contracts constitute gambling, the debate often devolves into arguments such as: "Are perpetual contracts futures? If so, why is there no physical delivery? Perpetual contracts use leverage and are subject to forced liquidation!" Even if I can demonstrate that perpetual contracts are a new form of futures—drawing an analogy to index futures, which also lack physical delivery—it seems difficult to persuade the other party.

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Attorney Shao Shiwei | In Criminal Cases Where the Defendant Does Not Plead Guilty, Can the Court Still Impose a Suspended Sentence?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. Throughout the entire litigation process in criminal cases, parties are informed that “if you plead guilty and accept punishment, you may receive lenient treatment.” However, some parties still choose not to sign the Affidavit of Pleading Guilty and Accepting Punishment during the procuratorial stage. When the case reaches the court stage, they ask me, “Attorney Shao, can I refuse to plead guilty at trial?” I fully understand this mindset. The vast majority of parties are deeply reluctant to “plead guilty”.

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Attorney Shao Shiwei | When Business Models Operate in Regulatory Gray Areas, What Are the Potential Legal Risks for Practitioners?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. When I was a student at East China University of Political Science and Law, preparing for the Judicial Examination (now known as the Legal Professional Qualification Examination), one of the subjects was Jurisprudence. Within Jurisprudence, there was a chapter titled "The Role and Limitations of Law." It stated: Law possesses stability, whereas real life is diverse and multifaceted; a law that applies permanently is merely a fantasy; Law possesses conservatism, always lagging behind changes in real life; Even well-drafted laws require

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What Is the Difference Between a Fund and a Foundation? Essential Reading for Compliant Operations of Web3 Projects | Mankun Legal Education

A single character difference, yet a vast distinction!

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Attorney Shao Shiwei | Can Technological Neutrality Serve as an Effective Defense in Criminal Cases? (Part I) The Judicial Evolution and Legal Application Framework of Technological Neutrality

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. In recent years, Attorney Shao has represented numerous programmers or technical teams who faced criminal liability for providing technical services, including: representing the legal representative of a technology company accused of aiding information network criminal activities for providing software development services; representing an NFT digital collectibles platform charged with fraud; representing a well-known Web3 news platform subject to cross-regional law enforcement proceedings due to compliance issues; representing members of the founding team of a certain exchange (CTO)

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Investment in Virtual Currencies Resulting in Fraud: How to Facilitate the Recovery of Funds? | Mankun Web3 Legal Education

Pursue Criminal or Civil Remedies?

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Attorney Shao Shiwei | Distinction Between “Tenfold Compensation for Counterfeit Goods” and “Triple Compensation with Refund” | Selection of Litigation Strategy

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. Author of this article: Attorney Shao Shiwei. A Brief Case Study—On the Importance of Litigation Strategy: A purchased a certain imported food product from a supermarket. Assuming it is indeed an unsafe food product, if A seeks tenfold compensation for counterfeit goods, how should the litigation strategy be formulated? Analysis: According to the Food Safety Law, A may sue the business operator. The question arises: Should A sue the supermarket or the importer? Will the outcome differ? Reverse reasoning is required: If the court determines that

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Attorney Shao Shiwei | Gifts Exchanged During a Romantic Relationship: Can They Be Recovered After the Couple Breaks Up?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It reflects only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add: sswls66. Author of this article: Attorney Shao Shiwei. 1. Small-value items exchanged as customary gifts are generally treated as gifts, and claims for their return are typically not supported. 2. Expenses for joint consumption by both parties, such as purchases of clothing, food, and other daily necessities, or costs for joint travel, although paid by one party, are generally not recoverable because the funds have already been consumed. 3. Valuable property may be subject to return at the court’s discretion. In adjudicating such cases, courts generally consider factors such as local economic conditions.

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Attorney Shao Shiwei | Why Has My Bank Card Been Frozen by the Public Security Bureau?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It reflects only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. As such inquiries are frequently received, this article provides a brief summary for reference. Author: Attorney Shao Shiwei. I. Possible Scenarios Leading to Bank Card Freezing? ① Receiving transfers from unknown third parties; ② Engaging in private foreign exchange trading; ③ Having engaged in gambling, purchasing illegal online lottery tickets, or similar activities; ④ Conducting fund settlements in connection with foreign trade business; ⑤ Investing in virtual currencies or engaging in blockchain transactions; ⑥ The individual or their close relatives participated in illegal activities.

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Attorney Shao Shiwei | In the Face of Unlawful Infringement, Can We “Counter Violence with Violence”?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. In the face of unlawful infringement, can we “counter violence with violence”? —Reflections on the System of Justifiable Defense in Light of the Tangshan Assault Case: We Are All Just Ordinary People. Author: Attorney Shao Shiwei. In recent days, the Tangshan assault case has dominated trending search topics one after another. Those of us who have seen the surveillance footage are filled with indignation. However, hot-button incidents are invariably accompanied by online harassment. Today, news emerged featuring a statement from the female owner of the barbecue restaurant. [Play] But there are

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Attorney Shao Shiwei | A Showcase of Husbands’ Conduct After Their Wives Are Arrested

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 “According to statistics, male offenders account for approximately 90% of criminal cases[1]. Therefore, a common scene during court hearings involves female prosecutors, female judges (as women are predominant within the state system), and myself as the defense counsel (a drama of three women) surrounding the seemingly weak, pitiable, and helpless defendant (male). In criminal cases, female parties account for only about 10%. ” Author of this article: Attorney Shao Shiwei Based solely on my own case-handling experience

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Attorney Shao Shiwei | If Released on Bail Pending Trial, Will I Still Be Detained?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It reflects only the personal views of the author and does not constitute legal consultation or legal advice regarding specific matters. For article reprints, legal consultations, or professional exchanges, please add: sswls66. In practice, clients frequently raise this question; therefore, we provide a consolidated response herein. Author of this article: Attorney Shao Shiwei. I. What Does 'Release on Bail Pending Trial' Mean? It refers to a compulsory measure in criminal proceedings whereby judicial authorities, such as public security organs, people's procuratorates, and people's courts, order criminal suspects or defendants who have not been arrested or whose compulsory measures need to be changed after arrest, to provide a guarantor or pay a security deposit.

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Attorney Shao Shiwei | Can the Crime of Concealing Criminal Proceeds Be Reclassified as the Crime of Aiding Information Network Criminal Activities? Which Carries a Lighter Sentence?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: There are significant differences in sentencing standards between the Crime of Aiding Information Network Criminal Activities ("Bangxin") and the Crime of Concealing Criminal Proceeds ("Yanyin"). The maximum sentence for Bangxin is less than three years, whereas the maximum sentence for Yanyin is less than seven years. Therefore, correctly distinguishing between these two crimes is of utmost importance to the parties involved. Author of this article: Attorney Shao Shiwei We share a case of [minor crime defense] that we recently successfully handled: Xiao Wang and Xiao Zhang were coworkers at a construction site. One day,

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Attorney Shao Shiwei | Court Ruling Issued | Zhang Jie and Xie Na’s Purchase of a Shanghai Luxury Property Valued at RMB 60 Million Alleged to Involve “Skipping the Intermediary”; Intermediary’s Claim for RMB 600,000 in Commission Fees Dismissed

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reposting, legal consultation, or business exchanges, please add: sswls66 Introduction: “Skipping the intermediary” is not a strictly defined legal concept. The term commonly refers to the act whereby a client, leveraging exclusive information provided by an intermediary company, bypasses said intermediary to directly enter into a sales contract with the other party, thereby reducing the intermediary fees payable by the client or preventing the intermediary from obtaining its due remuneration. Author of this article: Attorney Shao Shiwei Body: The major controversy that emerged at the beginning of February 2022 has finally been resolved. Let us

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Attorney Shao Shiwei | Case Analysis | Schemes and Traps in the Crime of Aiding Information Network Criminal Activities

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. A few days ago, our team received a consultation from a university student as follows: The two WeChat Moments posts shown above are both advertisements for daily-paid part-time job recruitment. In the first image, the job description states: “Used for corporate tax avoidance and streamer tax avoidance.” In the second image, the job description states: “Purchasing electronic products on behalf of others.” The part-time work described in these two advertisements appears to be safe, profitable, and easy. University students, who are inexperienced in society and hope to earn money through part-time work, upon seeing such information...

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Attorney Shao Shiwei | Can a Conviction for the Crime of Opening a Casino Be Reclassified as the Crime of Gambling?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: According to Article 303 of the Criminal Law of the People's Republic of China, the crime of opening a casino carries two tiers of sentencing: imprisonment of less than five years, and imprisonment of five to ten years. The crime of gambling has only one tier of sentencing, with a maximum of fixed-term imprisonment of not more than three years. In practice, where it is difficult to distinguish between the two offenses, judicial authorities are more inclined to classify the conduct as the crime of opening a casino. Improper conviction may result in a heavier sentence for a lesser offense. Author of this article: Attorney Shao Shiwei Crowd-gathering

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Attorney Shao Shiwei | Determination of “Subjective Knowledge” and Defense Strategies in Cases Where OTC Merchants Are Suspected of the Crime of Concealing or Disguising Criminal Proceeds

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. Over-the-counter (OTC) trading in the cryptocurrency sector, simply put, involves the simultaneous exchange of fiat currency for virtual assets. China does not prohibit trading activities between individuals. Mainstream individual OTC merchants operate on major platforms such as exchanges and wallets, conducting transactions with users who trade cryptocurrencies. Although OTC merchants perform Know Your Customer (KYC) verification on users, the vast majority of merchants lack the capability to identify illicit funds. Furthermore, as merchants’ transaction volumes increase, encountering illicit funds becomes difficult to avoid. The previous arrest of Zhao Dong, a prominent figure in the cryptocurrency circle (founder of the digital currency financial platform RenrenBit and co-founder of Moji Weather), caused significant shock within the industry.

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Lawyer Shao Shiwei | Law Students and Medical Students Are Left Speechless

Special Disclaimer: This article is an original work by Lawyer Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on any specific matter. For article reprints, legal consultations, or professional exchanges, please add: sswls66. Recently, a court judgment has been widely circulated in various lawyer groups. This lawyer was also shocked by the plaintiff's claims. Out of curiosity and a desire to follow the drama, I located the first-instance and second-instance judgments for this case, intending to study them carefully, but unexpectedly nearly died laughing. Basic Facts: Ms. An went to the Plastic Surgery Hospital of the Chinese Academy of Medical Sciences for double eyelid surgery, spending 3,000 yuan. As the results did not meet her expectations, she sued demanding a refund of medical expenses, the execution of the doctor, revocation of the doctor's practicing license, compensation for economic losses, etc.

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Attorney Shao Shiwei | Earning RMB 100,000 Monthly by Arbitraging USDT? Here’s a Pair of Silver Bracelets for You! — Criminal Risks for OTC Merchants: The Crime of Illegal Business Operations (Part I)

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Attorney Shao Shiwei | Can Chinese Public Security Organs Conduct Cross-Border Arrests for Telecommunications and Online Fraud Committed Abroad?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It reflects only the personal views of the author and does not constitute legal consultation or legal advice on any specific matter. For article reprints, legal consultations, or business exchanges, please add: sswls66. The hit movie "No More Bets" has sparked a new wave of anti-fraud publicity online, drawing greater public attention to Northern Myanmar, a region bordering China. In the film, Chinese police conduct cross-border arrests of fraud syndicates, successfully bringing the perpetrators to justice. According to officially disclosed data, in 2020 alone, losses from telecommunications fraud in China exceeded RMB 35 billion, with over 60% of cases involving overseas dens.

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Attorney Shao Shiwei | Common Scenarios of Embezzlement by Corporate Executives in the Crypto Industry and Criminal Defense Strategies

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: According to an article published by Wu Blockchain, the crypto exchange Bybit sued Ms. Ho, who was responsible for payroll payments within the company, for abuse of power, alleging that she transferred a large amount of USDT to addresses secretly owned and controlled by her. A total of 4,209,720 USDT were transferred, resulting in USD 117,238.46 being paid into her personal bank account [1]. In the crypto circle, litigation involving executives is not uncommon,

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Attorney Shao Shiwei | What Criminal Legal Risks Arise from Engaging in DeFi Within China?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It reflects only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reposting, legal consultation, or business exchanges, please add: sswls66 Introduction: Under China’s current regulatory policies and judicial practice, the property attributes of virtual currencies are recognized, but their issuance and use as currency for domestic transactions are prohibited. DeFi comprises a series of financial activities based on blockchain technology, with virtual currencies as the primary subject. Given China’s stringent regulatory environment, operators of DeFi-related businesses often establish their operating entities overseas. Can this approach bypass regulation and evade domestic criminal

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Attorney Shao Shiwei | Does the Tallest Poppy Get Cut Down? In the Loan Facilitation Industry, It Seems Not Quite So

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: Loan facilitation institutions refer to intermediary service providers that conduct preliminary screening of users through traffic redirection and facilitate cooperation between users and lending institutions. During the user screening process, loan facilitation companies need to collect user information. Not only small companies, but even industry leaders and well-known listed companies in the loan facilitation sector, have, to varying degrees, engaged in the illegal or non-compliant collection of citizens' personal information. Therefore, many small and medium-sized enterprise owners engaged in loan facilitation business...

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Attorney Shao Shiwei | Is It Legal for Internet Celebrity KOLs to Issue Tokens Allowing Fans to Share in the Profits? Examining How Friend.tech and Time Store Leverage the Fan Economy

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Attorney Shao Shiwei | “Love Is All Around!” Goes Viral on Steam: What Are the Legal Risks?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: On October 18, 2023, a live-action simulated romantic interactive game titled “Love Is All Around!” (hereinafter referred to as “Love Is All Around”) was launched on Steam. Since its release as a paid game, its popularity has continued to rise, topping the best-seller chart in the Steam China region and surpassing major free-to-play titles such as PUBG, CS2, and Apex. As of November 2, its positive review rate reached 9

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Attorney Shao Shiwei | Live Streaming Lucky Draws: Gambling or Legal Prize Sales?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: On November 29, the Jinzhou Public Security Bureau issued an official announcement stating that the Taihe Branch of the Jinzhou Municipal Public Security Bureau successfully solved a case involving the operation of a casino through a live streaming platform. The total amount of funds involved in gambling exceeded RMB 17 million. 0 1 Suspects Allegedly Include DouYu Streamers According to police reports: The suspect, Zhou, was a streamer of the "PlayerUnknown's Battlegrounds" (PUBG) game on a certain platform. From 2019 to 2022, in order to increase the popularity of his live stream room and boost income

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Attorney Shao Shiwei | Has the Crime of Illegal Business Operations Become a High-Frequency Criminal Charge for USDT Merchants in the Crypto Circle?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: On December 16, 2023, the Guangdong High People’s Court published an article titled “You Cannot Profit from This Price Difference!” which caused an uproar in multiple WeChat groups dedicated to cryptocurrency trading. Whether they were over-the-counter (OTC) merchants, on-exchange USDT traders, or ordinary cryptocurrency speculators, anyone who had engaged in arbitrage through virtual currency trading (“brick-moving”) was discussing in these groups: What does the crime of illegal business operations mean? Can the business of “arbitrage through brick-moving” still be conducted in the future? Will continuing to do so lead to arrest?

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Attorney Shao Shiwei | The State Administration of Foreign Exchange Takes Action! An Increasing Number of USDT Merchants May Be Convicted of Illegal Business Operations! — Qingdao Police Solve Underground Banking Case Involving RMB 15.8 Billion

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: The days of USDT merchants are becoming increasingly difficult. Following the Guangdong High People’s Court’s release of typical cases on December 16, in which USDT merchants were convicted of illegal business operations (for attorney interpretation, see → “Has Illegal Business Operations Become a High-Frequency Criminal Charge for Crypto Circle USDT Merchants?”), CCTV News reported another major story on Christmas Eve yesterday: Shandong Qingdao Solves Major Underground Banking Case The key perpetrators were those buying and selling virtual...

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Lawyer Shao Shiwei | Transitioning from Programming to Web3: How to Assess Job Reliability and Avoid Pitfalls?

Special Disclaimer: This article is an original work by Lawyer Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. Over the past year, we have successively engaged with numerous professionals from traditional sectors such as fintech, payments, and data services who sought consultation. Among them are backend developers deeply involved in coding, senior engineers overseeing architectural design, product managers driving business implementation, and technical leads responsible for system iterations. Most of these individuals have accumulated years of experience in their respective fields, yet at a certain stage in their career development, they have begun to take interest in “Web3”, a once-distant new industry—not out of passion or blind adherence to trends, but because their existing career paths have gradually narrowed, while Web3 appears to offer another realm of possibility.

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Attorney Shao Shiwei | Is Tax Payable on Trading Virtual Currencies? — Interpretation of the Announcement Issued by the Shanghai Municipal Tax Service

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reposting, legal consultation, or business exchanges, please add: sswls66 Introduction: On January 3, 2024, the Shanghai Municipal Tax Service of the State Administration of Taxation published an article titled “Common Misconceptions Regarding Business Income and Classified Income for Individual Income Tax” on its official WeChat account, pointing out that: Individuals trading virtual currencies online are required to pay individual income tax. Consequently, the crypto community was stirred up again. Many friends asked, “Attorney Shao, does the requirement to pay tax on virtual currencies mean that trading virtual currencies will be legal in China in the future? Does the state recognize virtual curren

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Attorney Shao Shiwei | Arrested for the Crime of Opening a Casino: Courts Render Not Guilty Verdicts in These Scenarios!

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: The fact that a party is investigated by public security organs for alleged involvement in the crime of opening a casino, and subsequently subjected to detention, arrest, or released on bail pending trial, does not represent the final outcome of the case. According to the provisions of the Criminal Procedure Law, the prerequisite for a court to render a guilty verdict is that the facts of the case are clear and the evidence is credible and sufficient. Otherwise, a not guilty verdict should be rendered. Combining relevant not guilty judgments in cases of opening a casino, Attorney Shao categorizes the circumstances under which courts render not guilty verdicts

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Attorney Shao Shiwei | Is Mining in Blockchain Games Legal?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: In September 2021, the National Development and Reform Commission and other departments jointly issued the "Notice on Rectifying Virtual Currency 'Mining' Activities" (hereinafter referred to as the "Notice"), effectively prohibiting mining activities in China. Subsequently, blockchain games gained popularity. Is there any correlation between these two phenomena? Some argue that virtual currency mining is machine-based mining, while blockchain gaming is human-powered mining, with no essential difference between them. Therefore, against the backdrop of the domestic ban on mining...

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Attorney Shao Shiwei | What Legal Risks Should Be Considered for Paid Virtual Currency Communities?

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Attorney Shao Shiwei | Why Can Playing Blockchain Games Be Profitable?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add contact: sswls66 Introduction: The slogan of blockchain games predominantly features the "play to earn" model. During the years when the pandemic swept across the globe, the blockchain game Axie Infinity unexpectedly became a livelihood tool for residents in the Philippines. Many local young people earned hundreds of dollars per month through this pet-raising game. Due to China’s relevant policies adopting a predominantly negative stance toward virtual currencies, the metaverse, and related concepts...

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Attorney Shao Shiwei | Legal Analysis of NFT Staking in Blockchain Games

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Lawyer Shao Shiwei | Legal Review | How Compliant Is the Viral 'Carter World'?

Special Declaration: This article is an original work by Lawyer Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. Risk Warning: All relevant materials and news information in this article are sourced from publicly available information on the internet. They do not represent the author’s specific legal opinions or investment recommendations and are provided solely for exchange, discussion, study, and reference by relevant industry practitioners. Introduction: Recently, I came across a blockchain game named 'Carter World.' The platform launched in late February 2024. Although it has been online for only about ten days, market enthusiasm appears to be quite strong. Having long been an observer in the blockchain gaming circle...

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Attorney Shao Shiwei | Texas Hold’em Club Involved in Case of Opening a Casino: Does a Nominee Legal Representative Bear Liability?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: A client recently consulted me, stating that he served as a nominee legal representative for a friend’s Texas Hold’em club. However, just two months after opening, the club was reported to the authorities. The police raided the premises and made arrests. Several actual persons in charge of the club have been arrested and are currently detained in a detention center. The client is currently working in another city, and the police have not yet contacted him. Nevertheless, he is concerned about potential liability and is considering whether to return and surrender himself. Therefore, serving as a

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Attorney Shao Shiwei | What Are the Key Legal Compliance Points for Card-Based Web3 Games?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: Recently, two news items caught my attention. One was the launch of the public beta version of the trading card game Parallel on February 29, 2024. The other was that Degen Game, an esports game launched by DegenVerse, a Web3 gaming and esports entertainment platform (a real-time strategy game combining MOBA and card elements, also known as the Web3 version of Clash Royale), received

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Attorney Shao Shiwei | A Comprehensive Guide | Is a Game License Required to Launch a Free Game?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: It appears to be a consensus in the gaming industry that mid-to-heavy games with in-app purchases and paid features require a game license, whereas casual games without in-app purchases or payments temporarily do not. However, in practice, such as in two cases published in 2022 on the official website of the Zhaoqing City Anti-Pornography and Illegal Publications Office in Guangdong Province, the three penalized games had no in-app purchases and relied solely on advertising for monetization. It is reported that for several casual game products of the enterprises involved, the share of advertising revenue received was only

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Attorney Shao Shiwei | What to Do If Your Bank Card Is Frozen? How to Expedite Unfreezing?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: Few people carry cash in their pockets nowadays, as mobile payments have permeated every aspect of our lives. Therefore, if one day you had to pay cash even for a bowl of Hulatang (spicy soup), it would be truly devastating. Money laundering assistance (“running points”), lending bank cards, withdrawing online gambling proceeds, receiving foreign trade payments, telecom fraud, private currency exchange, and trading virtual assets are high-frequency scenarios leading to card freezes by public security organs. If your bank card is frozen, do not panic; this article tells you what you should do.

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Attorney Shao Shiwei | Real Case Study | Consequences of Private Currency Exchange: Frozen Bank Accounts, Wanted Status, and Suspected Fraud...

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: Some individuals, considering that official channels such as banks involve high handling fees, long processing times, and the requirement to visit designated branches, opt for private currency exchange. This is particularly common among friends living abroad for extended periods, such as those conducting business overseas or international students, who frequently encounter situations involving mutual currency exchange among acquaintances. However, Attorney Shao has recently received numerous inquiries regarding frozen bank accounts resulting from private currency exchanges. Therefore, it is deemed necessary to provide legal education on the potential legal risks associated with private currency exchanges.

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Attorney Shao Shiwei | What Are the Potential Risks for Foreign Trade Merchants Using USDT Virtual Currency for Payment Collection?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reposting, legal consultation, or business exchanges, please add: sswls66 Introduction: Friends in the foreign trade circle should have heard of the “frozen card wave” affecting Yiwu foreign trade operators around 2021—due to the common practice of overseas partners of Yiwu merchants settling payments through underground banks, combined with the nationwide “Card Breaking Campaign” launched by public security organs at the end of 2020, hundreds of thousands of Yiwu merchants had their bank accounts frozen by public security authorities across the country. According to relevant media reports 1 , there were cases where

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Attorney Shao Shiwei | Reflections on the “Path to Resolving the Impasse” of Frozen Bank Cards in USDT Sales

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction In the previous article → “Who Bears Liability for Receiving Stolen Funds in Virtual Currency Transactions?” Attorney Shao mentioned the “frozen card impasse” involving Mr. Wang, triggered by a virtual currency transaction: Mr. Wang was willing to compensate the reporting party only RMB 20,000, while the reporting party demanded full compensation of RMB 600,000 from Mr. Wang. As the two parties failed to reach an agreement, an impasse arose: the public security organs neither deducted the funds in Mr. Wang’s bank account nor unfroze his bank card.

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Attorney Shao Shiwei | Legal Risks of Liquid Staking Projects in Light of the Arrest of STFIL Protocol, a Filecoin Project Developer

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on any specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 Introduction: According to an official statement issued by STFIL Protocol, on April 9, 2024, its core technical team was being detained by Chinese police. This marks another instance where a Filecoin project developer has been investigated by domestic police, following the earlier investigations into Filecoin miners. According to the STFIL Protocol website, as a promoter of the Filecoin DeFi ecosystem

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Attorney Shao Shiwei | Insights for the Loan Facilitation Industry from Two Cases of Buying and Selling Personal Information with Virtual Currencies Cracked by Police

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reposting, legal consultation, or business exchanges, please add: sswls66 Introduction: In April 2024, state media reported two cases involving the buying and selling of citizens' personal information using virtual currencies, with highly similar factual patterns. Due to characteristics such as decentralization, anonymity, transactional convenience, and the ability to bypass cross-border geographic restrictions, coupled with the fact that stablecoins like USDT are pegged to the US dollar and do not experience significant price fluctuations, virtual currencies have long become essential money laundering tools for black and gray market crimes. Additionally, as

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Attorney Shao Shiwei | How Can Programmers Avoid Being Deemed Accomplices in Pyramid Schemes for Developing Web3 Projects? A Comprehensive Analysis of Five Major Risk Scenarios (Part I)

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66 In recent years, with the rapid development of the Web3 industry, an increasing number of programmers, smart contract developers, and outsourced technical teams have participated in system construction, contract deployment, and platform operations and maintenance for crypto-related projects, acting as on-chain engineers, project consultants, and in other capacities. However, many projects operating under the guise of “blockchain incentives,” “token rebates,” “GameFi gaming yields,” and “decentralized node rewards” are, in substance, implementing “

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Attorney Shao Shiwei | Different Judgments for Similar Cases? A Study on 'Territorial Jurisdiction' in Criminal Cases

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add: sswls66. Although the Criminal Law stipulates which acts constitute which crimes, and relevant judicial interpretations and guidance opinions are continuously being issued to provide further detailed explanations of the provisions of the Criminal Law and its amendments, legal provisions are ultimately principled rather than mechanical. For instance, it is impossible to simply and crudely stipulate that an illegal business operation amounting to RMB 500,000 shall be sentenced to five years, while RMB 600,000 shall be sentenced to six years. Criminal adjudication requires comprehensive consideration of the three characteristics of a crime (social harmfulness, criminal illegality, and punishability).

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Attorney Shao Shiwei | Criminal Defense Practice in Online Gambling Cases | Can the Amount Wagered by an Agent on Their Own Behalf Be Deducted from the Gambling Funds?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add contact: sswls66. According to legal provisions, acting as an agent for a gambling website and accepting bets constitutes the crime of operating a casino. However, current laws do not clarify whether “accepting bets” is limited to accepting bets from others or also includes acts where the agent places bets on their own behalf. The significance of discussing this issue lies in the following: For example, if an agent wagers RMB 2 million on their own behalf but accepts only RMB 100,000 in bets from others, should the amount of gambling funds used to determine that the agent committed the crime of operating a casino be

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Attorney Shao Shiwei | Should Gambling Funds and Commissions Not Withdrawn from Gambling Websites Be Confiscated by the Court?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add: sswls66. As an agent for a gambling website, there are three sources of revenue: winnings from one's own gambling; commissions received from the website based on bets placed by subordinate agents or gamblers recruited by the agent; and rake taken from gamblers. If an agent is arrested for the crime of operating a casino, in addition to sentencing, the court will determine and handle the amount of gambling funds and illegal gains to be disgorged. If the court determines that a large amount must be disgorged, this may impose a significant financial burden on the defendant and their family.

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Attorney Shao Shiwei | Event Recap | What Are the Legal Risks of Investing in Blockchain and Virtual Currency Projects? How to Avoid Pitfalls?

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Attorney Shao Shiwei | Summary of Key Defense Points Regarding 'Double Counting of Gambling Funds' in Online Gambling Cases

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add: sswls66. According to the judicial interpretation on online gambling, if the cumulative amount of gambling funds reaches RMB 300,000 or more, the statutory penalty for the crime of opening a casino is imprisonment of five years or more. Due to the strong anti-investigation awareness and money laundering methods employed by operators of online gambling platforms, platform servers are often located overseas, server data is automatically cleared on a regular basis, electronic evidence is highly susceptible to damage or loss, and gambling funds are settled through third-party payment platforms, underground banks, 'running points' platforms, virtual currencies, etc., making it difficult to accurately determine...

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Attorney Shao Shiwei | Developing Telegram Mini-Games: How to Mitigate Legal Risks?

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Attorney Shao Shiwei | Legal Alert: Beware of Cross-Border E-Commerce Scams Involving the “No Inventory” Model!

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It reflects only the personal views of the author and does not constitute legal consultation or legal advice on any specific matter. For article reprints, legal consultations, or professional exchanges, please add contact: sswls66. “No-inventory cross-border e-commerce: Easily earn over RMB 10,000 per month! Cross-border e-commerce: Small investment, high returns, guaranteed profits with no risk! Born in 1998, achieved financial freedom by doing cross-border e-commerce from home!” During periods of economic downturn, many advertisements and self-media accounts promising ways to make money are prevalent. So, is cross-border e-commerce a good side hustle? According to publicly available data, in 2023, China’s total import and export volume in cross-border e-commerce reached RMB 2.38 trillion, a year-on-year increase of 15.6%. This year,

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Attorney Shao Shiwei | Frequent Gambling-Related Cases on Voice Chat Platforms: How to Effectively Mitigate Legal Risks?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It reflects only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add contact: sswls66. With societal development, users’ social needs have become increasingly diverse. In addition to traditional text- and video-based social interactions, voice chat has emerged as a new form of social interaction, offering users communication experiences distinct from text and video. However, numerous voice chat platforms have been repeatedly implicated in gambling-related allegations, with the most influential case being the “DouYu Platform Gambling Case.” According to statistics, between March 2023 and February 2024,

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Attorney Shao Shiwei | Does the Operation of Perpetual Contract Services by Virtual Currency Trading Platforms Constitute the Crime of Operating a Casino?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add contact: sswls66. Introduction: Based on cases handled by Attorney Shao in recent years and the numerous consultations received in daily practice, it has been observed that domestic police authorities (particularly in the Hunan region) frequently impose criminal coercive measures on relevant personnel involved in perpetual contract services offered by virtual currency trading platforms, on suspicion of the crime of operating a casino. The relevant personnel include: shareholders, actual controllers, senior executives, business heads of the contract module, technical staff,

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Attorney Shao Shiwei | Entrusted Investment in Virtual Currencies: How to Mitigate Legal Risks?

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It reflects only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add contact: sswls66. Although policies such as Announcement No. 94 and Announcement No. 924 classify virtual currency-related businesses as “illegal financial activities,” legal disputes arising from entrusted wealth management involving virtual currencies remain common in practice. As early as 2013, five ministries and commissions explicitly stated that virtual currencies such as Bitcoin do not possess the same legal status as statutory currency. Nevertheless, regulatory provisions have failed to dampen the enthusiasm of investors. Guided by the investment philosophy that “higher risk yields higher returns,”

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Attorney Shao Shiwei | The Art of Litigation | How Do Lawyers Prepare for a Civil Trial When Facing an Unfamiliar Field?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add contact: sswls66. Although my primary practice area is criminal law, I frequently receive inquiries from friends regarding civil legal issues. In reality, the various disciplines of law are closely interconnected, and many case-handling techniques and modes of thinking are common to both criminal and civil practice. Moreover, I have previously handled numerous civil cases. I have always believed that an important quality lawyers should possess is the ability to solve problems and the capacity for rapid learning when confronted with unfamiliar fields.

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Attorney Shao Shiwei | How Should Enterprises Save Themselves in the Face of Profit-Driven Law Enforcement Akin to 'Deep-Sea Fishing'?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reposts, legal consultations, or business exchanges, please add: sswls66 Introduction: In April this year, the Internal Reference on Guangdong Provincial Conditions, authored by the Guangdong Provincial Conditions Survey and Research Center, circulated widely. The text pointed out that "Internet companies in Guangdong Province are subjected to cross-region profit-driven law enforcement, making their survival unsustainable." Furthermore, an online image stating that "police from other regions must not illegally enter enterprises to handle cases" also sparked heated discussion among netizens. Attorney Shao has observed that the long-criticized issues of "deep-sea fishing" and "profit-driven law enforcement" have recently reignited intense debate within the legal community.

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

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add contact: sswls66. As a criminal lawyer specializing in the crypto sector, we frequently observe in practice that numerous retail crypto traders and USDT merchants have their bank accounts frozen or become suspects in money laundering-related criminal offenses because they unfortunately receive illicit funds during transactions. How to ensure that one’s bank card is not frozen when selling USDT has become a concern for many. Where there is demand, there is a market; thus, USDT bank cards emerged. Previously, Attorney Shao, in “Mastercard USDT Cards, UnionPay

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Attorney Shao Shiwei | Joining a Web3 Company or a Web2 Company: How Should Professionals Make Their Choice?

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Attorney Shao Shiwei | DEXX Trading Platform Suffers Theft of User Assets Exceeding Hundreds of Millions: What Liabilities Should the Platform and KOLs Bear?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add: sswls66. On November 16, 2024, the crypto assets trading platform DEXX was subjected to a hacker attack. Related reports indicate that user assets stolen by hackers exceeded hundreds of millions of US dollars, causing significant losses to many users, while rights-protection groups are rapidly forming. As an emerging crypto assets trading platform operated by Chinese nationals, its rapid rise benefited from extensive promotion by numerous Key Opinion Leaders (KOLs). So, regarding this security incident, what are the legal risks for the platform operator and KOLs?

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Attorney Shao Shiwei | Case Commentary | Programmer Illegally Obtains Virtual Currency by Taking Advantage of Position, Gains RMB 30,000, Sentenced to Three and a Half Years

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reposting, legal consultation, or business exchanges, please add: sswls66. In the eyes of many, programmers (coders, engineers) hold lucrative and enviable high-paying positions. However, in the view of criminal defense lawyers, this is also a high-risk profession that easily touches upon legal risks. Attorney Shao has previously represented numerous programmers involved in suspected criminal cases: Company operations suspected of copyright infringement, with programmers implicated as employees; Software companies providing illegal website construction services for clients, with the company’s legal representative suspected of

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Attorney Shao Shiwei | People's Court Daily Publishes Article "Criminal Characterization of Illegally Stealing Virtual Currencies"—Highlighting the Cognitive Limitations of Judicial Authorities Regarding Virtual Currency Crimes

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add: sswls66. On December 5, 2024, the People's Court Daily published the article "Criminal Characterization of Illegally Stealing Virtual Currencies." The case described in the article is not particularly complex; it simply involves Person A stealing Person B's virtual currency (USDT) and selling it for profit. However, the analysis by court personnel in the article regarding this case evokes a chilling sensation, revealing an attitude of: "Although I do not understand blockchain or virtual currencies, I believe you should be heavily sentenced."

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Mankun Web3 Research: Putin Announces BRICS Adoption of Crypto Assets—A Major Blow to De-Dollarization?

The "Crypto Dream" of the BRICS Nations

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Attorney Shao Shiwei | The September 24 Notice Is Not Law, So on What Basis Do You Claim I Committed a Crime?

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Mankun Research: Bangkok Blockchain Week Opens—Why Do Web3 Entrepreneurs Flock to Thailand?

The W2140 World AI + Web3 Expo Awaits Your Participation!

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An Alternative Path for Compliant Crypto Payment Startups | Mankun Web3 Legal Education

Compliance Challenges and Solutions in Web3 Implementation

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Mankun Web3 Research: AntChain’s “Two Chains, One Bridge” Platform—How to Navigate Cross-Border Real-World Assets (RWA)?

Can Everything Be Tokenized as Real-World Assets (RWA)?

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Attorney Shao Shiwei | How Should the "Amount of Gambling Funds" Be Determined in Online Gambling Criminal Cases?

Advantages and Disadvantages of Four Methods for Determining the Amount: Bet Amount, Winnings, Initial Deposit, and Settlement Amount. This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. According to legal provisions, organizing gambling involving three or more persons, where the cumulative amount of gambling funds reaches RMB 50,000 or more, constitutes the crime of gambling; in cases of opening a casino, where the cumulative amount of gambling funds reaches RMB 300,000 or more, it constitutes the circumstance of "serious circumstances" for the crime of opening a casino (punishable by fixed-term imprisonment of 5 to 10 years). For online gambling activities, due to the absence of temporal and spatial constraints, they can be conducted on a larger scale within a shorter time...

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Attorney Shao Shiwei | Conceptual Clarification | Gambling Funds, Illegal Gains, and Fines in Gambling-Related Criminal Cases

How high are the amounts subject to confiscation and fines in gambling-related cases?

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A Comprehensive Guide: How to Establish a Crypto Fund in Hong Kong? | Mankun Web3 Legal Education

Navigating the Complexities of Establishment

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Attorney Shao Shiwei | Should Agents Who Recruit Players and Downlines for Gambling Websites Be Classified as Principal or Accessory Offenders in the Crime of Operating a Casino?

Defense Strategy: Serious Circumstances + Accessory Offender = Sentence of Less Than Five Years

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Event Recap | Mankun Law Firm x Shanghai Tree Graph Research Institute: Web3-Driven Compliant Financial Innovation

Compliance Challenges and Solutions for Web3 Implementation

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Mankun Web3 Research: DePIN Promotes Greater Network Democracy and Easier Compliance

Satoshi Nakamoto Would Certainly Appreciate DePIN

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Attorney Shao Shiwei | In Cases of Online Gambling Crimes, Can the Cumulative Betting Amount Be Directly Recognized as the Amount of Gambling Funds?

Explaining the Law Through a Case: A Crime of Opening a Casino That Underwent Three Trials

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Mankun Lawyer | Salt Tickets and Bitcoin: A Game of Power

Civilization in a Packet of Salt

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Attorney Shao Shiwei | Can Relocating Abroad or Changing Nationality Evade Criminal Sanctions?

With a 100% profit, people will disregard all laws; with a 300% profit, they will fear no crime, not even the danger of hanging.

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Mankun Web3 Research: Is Bitcoin (BTC) Mining Rising to the Level of National Strategy? Address Environmental Concerns First!

Legitimate Wealth Creation (Benefits at the End of the Article)

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Blockchain Technology Companies Assisting Public Security Organs in Combating Virtual Currency Crimes: How to Ensure Legal Compliance? | Mankun Web3 Legal Education

Key Considerations for Implementation

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Attorney Shao Shiwei | Trading in “Virtual Assets” Listed as One of the Methods of Money Laundering

The legal risks associated with virtual currency trading are increasing.

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Web3 Lawyers: Less Intimidation, More Constructive Guidance

Compliance in Web3 should start from the very beginning.

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Lawyer Shao Shiwei | Case Discussion | Does Operating a Virtual Currency Exchange Constitute the Crime of Illegally Utilizing Information Networks? (Part II)

The Crime of Illegally Utilizing Information Networks: The 'Catch-All' Charge for Criminal Legal Risks in the Crypto Circle

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Mankun Web3 Research: Survival Rules for NFTs in the Chinese Market—Consumer Attributes and Community Culture

Consumption or Investment?

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Attorney Shao Shiwei | Case Discussion | Does Operating a Virtual Currency Exchange Constitute the Crime of Illegally Utilizing Information Networks? (Part I)

The Crime of Illegally Utilizing Information Networks: The 'Catch-All' Charge for Criminal Legal Risks in the Crypto Circle

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Operating a Virtual Currency Exchange in Hong Kong: What Licenses Are Actually Required? | Mankun Web3 Legal Education

On October 3, 2024, the Securities and Futures Commission (SFC) of Hong Kong updated its list of licensed virtual asset trading platforms on its official website, announcing HKVAX as the latest licensed exchange. This marks the third virtual currency exchange recognized by Hong Kong regulators, following OSL Exchange and HashKey Exchange. According to reports from Ming Pao, a prominent Hong Kong news media outlet, HKVAX already holds Type 1 (Dealing in Securities) and Type 7 (Providing Automated Trading Services) licenses issued by the SFC, offering OTC brokerage services, virtual currency trading, and comprehensive virtual asset custody services to virtual currency investors in Hong Kong. This may raise a question for some: I also want to operate in Hong Kong...

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Where Is the Best Place for Web3 Entrepreneurship? The 2024 Global Ranking of Crypto-Friendly Countries Is Released

Dubai Ranks First

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Forbes: China Launches Large-Scale Blockchain Infrastructure to Build a New Engine for Global Competitiveness

China has integrated blockchain into various sectors of society.

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Mankun Web3 Research | RWA Case Analysis: How Can Rare Earth Minerals Be Tokenized?

Building a Sustainable Supply Chain for Rare Earth Elements

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Attorney Shao Shiwei | No Receipt of Illicit Funds, No Assistance with Currency Exchange: Still Convicted for Profiting from Price Differences in USDT Virtual Asset Trading?

Profiting from price differences = illegal business operations? This is absurd!

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The “Premier Stablecoin” USDT Reaches a Record Market Capitalization: Unveiling the Hundred-Billion-Dollar Commercial Empire Behind Tether

Tether (USDT), which has become an “community of interest” with U.S. Treasury bonds, has ambitious aspirations.

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Attorney Shao Shiwei | How to Ensure Legal Compliance When Engaging in Football Match Betting via NFT Digital Collectibles?

Analysis of Legal Issues Surrounding Web3 "Football Betting"

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Essential Knowledge for Web3 Entrepreneurs Expanding Overseas: Declaring Overseas Income for Tax Purposes Cannot Be Overlooked | Mankun Legal Education

Is it safe to earn and spend income entirely overseas?

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Is It Still Viable to Launch an NFT Digital Collectibles Venture in 2024? | Mankun Web3 Legal Education

Compliant projects still have significant market potential

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Reflections on the Cyberport Hong Kong Event: The Current State and Future Development of Virtual Asset Regulation in Hong Kong | Mankun Law Firm Legal Education

Clear and Proactive Advancement in Crypto Regulation

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Newcomers to Web3: Which Companies Should You Avoid? | Mankun Law Firm’s Legal Education Series

The Dazzling Array of Web3 Recruitment Opportunities

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Attorney Shao Shiwei | Unpaid Wages in Virtual Currency: How Do Courts Rule? (Legal Research Series for Web3 Workers, Part 1)

Special Disclaimer: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or business exchanges, please add: sswls66. Based on the legal consultations received by Attorney Shao in recent years from newcomers to the crypto circle or new entrants to the workforce, they often have complex feelings regarding job opportunities in the Web3 industry. How can these feelings be described? Fear, dread, expectation, longing, helplessness, confusion... In short, there are all kinds of emotions. They seem to vaguely feel that the business activities of their company might not be permitted by the state? But then again, their supervisors have stated that what they are doing is legal and compliant, so they...

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Event Recap | Compliance and Practical Pathways in the Real-World Assets (RWA) Sector

On the afternoon of May 16, the “RWA Practice Guide: Opportunities and Challenges” series of events under the Shanghai-Hong Kong Web3.0 Innovation Center, co-hosted by Wanxiang Blockchain Labs and Qianji Technology and organized by the Web3 Entrepreneurs Club, was successfully held in Jing’an, Shanghai. The event brought together traditional financial institutions, high-quality asset originators, and on-chain protocol developers. Wang Lei, Partner at Mankun Law Firm, was invited to attend to jointly discuss the development trends, compliance challenges, and practical implementation of real-world assets (RWA), promote resource sharing and cross-sector collaboration, and support the healthy development of the RWA ecosystem.

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Lawyer Shao Shiwei | Legal Alert: Guarding Against Hong Kong Check Transfer and Currency Exchange Scams—Fraudster Flees, Introducer Sentenced to Five Years’ Imprisonment

This article is an original work by Lawyer Shao Shiwei. It reflects solely the personal views of the author and does not constitute legal consultation or legal advice on any specific matter. For article reprints, legal consultations, or business exchanges, please add: sswls66. This article was inspired by a recent criminal case handled by Lawyer Shao involving an introducer in a currency exchange transaction. However, to protect privacy, no specific details of the pending case will be disclosed. The purpose is merely to provide general legal education, hoping that more individuals will understand such scams and take preventive measures to avoid potential criminal liability.

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Mankun Research | The Chaotic real-world assets (RWA) Space: 10 Harsh Truths—Don’t Let the Scammers Blind You

Recently, the trend of real-world assets (RWA) (tokenization of real-world assets) has swept through mainland China’s social media with unusual intensity. From the blockchain community to the financial sector, and from self-media channels to investment groups, RWA has seemingly become synonymous with financial freedom overnight. Various “RWA project sponsors,” “full-service providers,” and “mentors” have sprung up like mushrooms after rain, each solemnly asserting that RWA is the next big opportunity and that missing out would lead to lifelong regret. However, the more vibrant this circle appears, the more chaotic and murky it becomes, with scammers preying on retail investors, speculators trading worthless assets, and anxiety peddlers all mingling together. I feel compelled to pour cold water on this hype—the current state of this circle is nothing but a boiling pot of filth.

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Attorney Shao Shiwei | In-Depth Analysis | Behind the Money Laundering Case Involving Purchasing USDT in Hong Kong: Southeast Asia’s Fraud Industry Is Penetrating Hong Kong

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reposting, legal consultation, or business exchanges, please add: sswls66. Hong Kong, this world-renowned free port and international financial center, saw its crypto-economic ecosystem flourish long before the introduction of official preferential policies. Among these, virtual asset over-the-counter trading service providers (VAOTC), operating through offline stores and online groups, together with native and overseas virtual asset trading service providers (VATP), provide investors with token exchange and fiat-to-crypto on/off-ramp services, forming a unique market landscape. However

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Attorney Shao Shiwei | A Comprehensive Guide | Why Does Arbitrage Trading in USDT Virtual Currency Constitute the Crime of Illegal Business Operations Involving Foreign Exchange Trading?

Special Declaration: This article is an original work by Attorney Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reposts, legal consultations, or business exchanges, please add: sswls66. Based on work over the past six months, Attorney Shao has a profound observation: Cases where individuals are convicted of illegal business operations due to trading virtual currencies are increasing. Since late 2023, when various state media outlets successively published typical cases of illegal business operations related to virtual currency trading, judicial authorities across different regions appear to have continuously intensified their crackdowns on such transactions in practice. However, many parties still do not understand why trading USDT virtual...

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What Legal and Compliance Issues Arise When Web3 Games Launch Secondary Markets for Overseas Expansion?

The development of overseas Web3 games also faces obstacles arising from various complex circumstances. According to Footprint Analytics’ July report on Web3 games, there were a total of 3,362 Web3 games in July, with only about one-third remaining active. Among these, only 289 games attracted more than 1,000 monthly active on-chain users (MAU). This has sparked market discussions regarding the sustainable development of Web3 games. Active users are the foundation of sustained revenue for Web3 games; therefore, in addition to generating revenue by directly selling in-game items through primary markets, project teams employ various methods to enhance the sustainability of their revenue, such as

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Is a Turkish Crypto License Worth Applying for by Web3 Entrepreneurs?

From September 2023 to August 2024, the exchange rate between the Turkish lira and the US dollar fluctuated with a decline of 22%. For a Turkish individual sensitive to arbitrage opportunities, holding liras is undoubtedly a losing proposition, and they will certainly not miss any opportunity to convert their liras into US dollars or other assets less prone to depreciation as early as possible. A 2023 report by KuCoin stated that over 50% of Turks invest in cryptocurrencies. Faced with such an overwhelming situation, Turkish authorities have had no choice but to embrace cryptocurrencies. Although it does not explicitly mention the rapid depreciation of the fiat lira, its "Amendment to the Capital Markets Law" (Adopted Bill on Amendments to the Capital Markets Law) reveals a sense of resignation throughout: "Although the high volatility of crypto asset price trends has made people more aware of the risks associated with these assets, households are increasingly interested in these assets, which differ significantly from assets in the current financial system. Particularly during the global pandemic, global individual attention to this sector increased, and the use of crypto asset platforms by individuals with a higher risk tolerance became very common. It is understood that in Turkey, approximately 10 million people have opened accounts and conducted transactions on crypto asset platforms. Therefore, consistent with international examples,

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It’s Already 2024: Is There Still Viability for NFT Digital Collectible Ventures?

A few days ago, two seasoned practitioners with years of experience in China’s NFT digital collectibles industry visited Mankun Law Firm for discussions. They shared various remarkable experiences from their past two to three years in the industry and addressed many concerns raised by platform operators and entrepreneurs. Many of these topics reflect the confusion faced by those seeking to launch ventures in the NFT space amid the current regulatory landscape. With the aim of promoting positive industry development, and subject to appropriate anonymization, Mankun Law Firm has transcribed the discussions between Attorney Liu Honglin and the two guests into this article, hoping to provide some insights or inspiration for entrepreneurs in related fields.

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How Are Well-Known Web3 Projects Established in Hong Kong Handling Compliance?

As a financial hub in Asia, Hong Kong has consistently been at the forefront of global regulation in the virtual currency market. For instance, the new Virtual Asset Trading Platform (VATP) licensing regime implemented on June 1, 2023, the recently released consultation paper on the regulation of stablecoin issuance, and the list of sandbox applicants all mark significant steps forward in Hong Kong’s regulation of virtual currencies. These measures aim to enhance overall market integrity and stability by improving investor protection and market transparency, while also providing clear regulatory guidance for crypto projects operating in Hong Kong, thereby attracting attention from global investors and crypto enterprises. Mankun lawyers are frequently asked in consultations,

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Highly Practical! Where Should Web3 Startups Incorporate for Lower Taxes? A Comparison of Hong Kong, Singapore, and Mainland China

With the vigorous development of global Web3.0 technology, an increasing number of Chinese entrepreneurs are choosing to expand overseas, particularly opting for Hong Kong and Singapore due to their favorable policies and stable environments. Hong Kong and Singapore have adopted positive attitudes and transparent regulations in the Web3.0 sector, providing significant convenience and support to entrepreneurs. In Hong Kong, well-known Web3.0 companies such as Animoca Brands and HashKey have achieved remarkable success globally through continuous innovation and expansion. Meanwhile, Singapore has attracted industry giants like Binance and Crypto.com, becoming a hotspot for blockchain and cryptocurrency startups thanks to its robust legal framework and preferential tax policies.

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Judicial Disposal of Virtual Currencies: How to Ensure Compliance (Part 5)?

Seizure and Custody of Virtual Currencies Involved in Cases

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Web3 Project Compliance: Why Choose a Cayman Foundation for Token Issuance?

Token Issuance: More Options Available

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Lawyer Shao Shiwei | How Can Blockchain Games That Are "Play-to-Earn" Avoid Being Classified as Gambling?

Special Declaration: This article is an original work by Lawyer Shao Shiwei. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For article reprints, legal consultations, or professional exchanges, please add WeChat contact: sswls66. Preface: Under China’s current policy and regulatory environment, entrepreneurs in the blockchain gaming sector must, from a compliance perspective, take care to avoid risks related to gambling. At a press conference held by the Supreme People’s Procuratorate on November 29, 2021, it was explicitly stated that “a significant characteristic of application software suspected of involving gambling is the presence of relevant cash-out functions.” The basic model of blockchain games, “play to earn” (playing while earning), is

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High-Volume Traders Speculating on NFT Digital Collectibles: How High Are the Legal Risks?

Those who frequently walk by the river are bound to get their shoes wet.

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Transferring 1 Million USDT (Tether) to a Girlfriend: Can It Be Recovered After a Breakup?

Romance Hurts; So Does Losing USDT