Day, Biger Exchange announced an orderly benign exit, and the platform will stop digital currency trading and withdrawal services on December 27
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As the exchanges are busy running and “benign retreat”, some trading platforms are “going abroad”. The typical operation is to cancel the domestic entity and block China IP transactions.
Data from corporate search shows that on November 26, 2019, the company principal of the CoinTiger Exchange, Chengdu Taiyi Technology Co., Ltd., due to a resolution to dissolve, proposed to apply to the company registration authority for cancellation of registration. Later, CoinTiger responded that its registered place was in Singapore, and the cancellation of the domestic entity’s normal operations only in response to the regulatory policies in mainland China.
The cold winter of the currency circle can be seen from the movement of the exchange. Regarding the current situation, the choices of the exchanges are different, which also determines their future destiny.
Is it safe to clear the exchange?
Whether it is an initiative to liquidate assets or seek to go overseas, the fundamental purpose of the exchange is to avoid legal risks. However, things are not as simple as they think.
Xiao Jun, a member of the Bank of China Law Research Association and a practicing lawyer at Beijing Dacheng Law Firm, analyzed the legal risks that different exchange behaviors may take from the perspective of a legal practitioner to the Daily Journal of Odaily.
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For direct-run exchanges, Xiao Yan said that he needs to bear civil legal liabilities, including compensation for victims or infringers, as well as Take criminal legal responsibility.
“On the criminal level, the Runway Exchange is suspected of financial fraud. If there is illegal use of fraudulent methods to raise funds for illegal possession, it will be suspected of raising funds. The act of” Runway “itself indicates that it is illegal to Possession for the purpose ‘, that is, the legal risk of this type of behavior is greater. When the conditions permit, the victim can bring a criminal incidental civil lawsuit or another civil lawsuit to claim relevant compensation. “Xiao Yan explained.
Odaily Planet Daily reminds readers if this happensFor such events, investors are advised to report the incident directly to the location as soon as possible and submit relevant materials in accordance with police requirements. The sooner you call the police, the more likely you are to recover your losses.
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For those who seize users ’assets for“ finance management ”or freeze their withdrawals, Xiao said:“ During a legal exchange transaction, the legal relationship between the user and the exchange is a contractual relationship, and the user ’s assets are forcibly frozen. If the exchange changes the use of user funds or otherwise violates the contract, the user has the right to sue. “
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For exchanges that actively retire user assets, Xiao Min believes that at the legal level, the risk of fundraising fraud can be avoided to a certain extent, but it cannot guarantee all exemptions.
She explained: “The” Regulations on the Management of Blockchain Information Services “stipulates that, when engaging in blockchain information services within the territory of the People’s Republic of China, it is necessary to fulfill the filing procedures. That is, the domestic exchange model in China has been banned. The exchange is suspected of operating illegally. In the course of transactions that involve the absorption of public funds, it will also be suspected of raising funds illegally. “
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For exchanges that have cancelled their domestic entities and announced that they are no longer serving Chinese users, Xiao Zheng said that it does not mean that they can be completely exempted.
“The principle of jurisdiction in China’s criminal law adheres to the principle of personal jurisdiction, territorial jurisdiction and protection jurisdiction. Among them, territorial jurisdiction means that anyone who commits a crime in the territory of the People’s Republic of China, except as specifically provided by law, This law applies. If an act or result of a crime occurs in the territory of the People’s Republic of China, it is considered to be a crime in the territory of the People’s Republic of China. The principle of personal jurisdiction states that ‘Citizens of the People’s Republic of China commit crimes outside the territory of the People’s Republic of China. This law applies to the crimes stipulated in the Law, but the maximum penalty under this law is a term of imprisonment of less than three years, which can not be prosecuted. That is to say, continuing to engage in illegal business operations outside the Chinese domain or the result of the criminal behavior occurred in China Yes, the perpetrators will also be evaluated by our law. “Xiao Yan explained.
Simply put, those who actually conduct exchange operation propaganda in China, or Chinese who engage in exchange operation abroad, are not completely exempt.
Early defeat of the Exchange’s “clustering down”
The first wave of “super-birth” on the exchange began with the “Thousand Wars” in mid-2018.
At that time, Fcoin launched “Trading is Mining”, which became the number one exchange in the world, making many people envious. Overnight, hundreds of trading platforms emerged, following the Fcoin.
However, as the market turns cold, especially in December when Bitcoin dropped to more than 3,000 U.S. dollars
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