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Will the Illegal Fund-Raising Regulations look backwards for N years? Does USDT count as "funds"?



Original title: "Illegal fund-raising regulations after three years of investigation will come into effect soon"

Whether it will be investigated for N years, it is groundless or true.

First of all, we need to make it clear that the regulations on illegal fund-raising are administrative regulations, and the part related to punishment is bound and supported by the "Administrative Punishment Law". According to the "Administrative Punishment Law", no administrative penalty will be imposed if the illegal act is not discovered within 2 years; if it involves citizens' life safety, financial security and has harmful consequences, the time limit will be extended to 5 years. Except as otherwise provided by law. The above-mentioned time limit is calculated from the date when the illegal act occurs, and if the illegal act is continuous or continuous, it is calculated from the date when the act ends. If it has been suspected of the crime of illegally absorbing public deposits, the prosecution period is 15 years, which is also calculated from the date of the end of the act. That is to say, after the illegal fund-raising regulations come into effect, the prosecution of illegal acts shall be carried out in accordance with the Administrative Punishment Law, and those suspected of crimes shall be dealt with in accordance with the statute of limitations stipulated in the Criminal Law.

Secondly, will the illegal fund-raising regulations deal with the behavior before it takes effect? Most of the administrative regulations will not be retroactive, that is to say, the regulations will come into effect on May 1, and will regulate the illegal fund-raising behavior after it takes effect, and will not regulate the behavior that has ended before (in our country, only the judicial interpretation is retrospective , other laws, regulations and rules only regulate the behavior after they take effect). However, Sister Sa is worried that readers will misunderstand. It must be emphasized that some illegal fund-raising behaviors in the currency circle have occurred long ago and have not stopped until the law comes into effect. They continue to violate the national financial management order. The illegal fund-raising regulations are resolutely cracked down. That is to say, the illegal fund-raising regulations are cracked down on behaviors that are illegal before they come into effect and continue until after they come into effect.

Dalian Municipal Office of Non-Government: Investors need to be alert to illegal fund-raising around concepts such as "blockchain": According to news on June 15, the Leading Group for Dealing with Illegal Fund-raising in Dalian City, Liaoning Province today launched a publicity month to prevent illegal fund-raising within the city. A person from the Dalian Municipal Non-official Office said that judging from the typical illegal fund-raising cases investigated and dealt with in recent years, in the name of virtual tasks, virtual currency, consumer rebates, etc., current hot spots such as "One Belt and One Road", "Internet of Things" and "Blockchain" There are many fund-raising behaviors to hype the concept.

The majority of investors must enhance their ability to distinguish, refrain from coveting high profits, participating in illegal fund-raising activities, and do not believe in "free lunches". (Dalian Daily) [2020/6/15]

Again, there is a thin line between criminal offenses and administrative violations. Comparing the definition of illegal fund-raising with the crime of illegally absorbing public deposits, we will find that the elements are very similar, and then look at the illegal fund-raising itself. In the existing illegal fund-raising incidents, once social harm (risk of the public) occurs, the public security organs will basically handle the case according to law , The pursuit of the pursuit, the investigation and investigation, leaving limited space for administrative agencies to punish. Between illegal fund-raising and illegal fund-raising crimes, it can be considered as a "necessary condition". This kind of crime requires the existing illegal premise, and then there is the possibility of "recrimination" before it will be treated as a crime. I am still afraid that everyone will misunderstand. After all, law is a science, and it cannot be understood by reading Chinese. Not a prerequisite for initiating criminal proceedings. In other words, people suspected of illegal fund-raising crimes can be detained directly in accordance with the provisions of the Criminal Procedure Law and the Criminal Law without being dealt with by the administrative agency.

The reporting and registration platform for pyramid schemes and illegal fund-raising announced the latest features of pyramid schemes, including virtual currency: as pyramid schemes have become more concealed, it has become more difficult for ordinary people to identify pyramid schemes, and many people have become rich overnight in pyramid schemes. Under the extremely provocative publicity such as 100 times return, I couldn't help the temptation and fell into the "magic cave" of pyramid schemes. The MLM and Illegal Fundraising Reporting and Registration Platform recently announced the latest features of MLM projects:

1. In the name of financial planning, use Internet tools to conduct pyramid schemes, illegal fundraising or fraud

2. Adopt a multi-level distribution model, or through the Internet, or through online head-pulling methods to conduct pyramid schemes and collect money

3. In the name of poverty alleviation lending or charity mutual aid, mainly relying on the Internet to carry out pyramid selling activities, accumulating wealth and defrauding

4. Carrying out MLM activities through the issuance of virtual currency and with the help of Internet tools and platforms

5. Enticing others to invest in the form of consumption rebates, thereby launching pyramid schemes and defrauding others of their money.

At the same time, in view of the rapid variation of illegal fund-raising and the more difficult problem of identification, the reporting and registration platform for pyramid schemes and illegal fund-raising reminds you to be vigilant in the following situations:

1. Under the guise of "watching advertisements and earning extra money" and "consumption rebates";

2. Under the guise of investing in overseas equity, options, foreign exchange, precious metals, etc.;

3. Under the guise of high returns or "free" pensions for investing in the pension industry;

4. Under the guise of private equity investment or joint venture, but do not go through the business registration of the enterprise;

5. Under the guise of investing in "virtual currency" and "block chain";

6. Under the guise of "poverty alleviation", "charity" and "mutual aid";

7. Distributing advertisements on the streets and in supermarkets;

8. Soliciting elderly people by organizing inspections, tours, lectures, etc.;

9. "Investment" and "financial management" companies, websites and servers located overseas;

10. Requesting to pay investment funds in cash or to personal accounts or overseas accounts. (China Daily) [2020/4/27]

In view of the legal characterization of Bitcoin as a "specific virtual commodity" in 2013, a large number of unskilled legal professionals presumed that other virtual currencies are also "specific virtual commodities", and even quoted papers by famous criminal law scholars. In fact, most of the virtual currency of the project party's ICO has no fair value, nor is it a property, but a pile of data. To reiterate, ICO is an illegal financing behavior, and there is no so-called currency circle regulatory agency in our country.

News | Kaizhou District of Chongqing successfully cleaned up suspected illegal fund-raising advertisements such as "blockchain" to resolve illegal financial risks: According to, since 2018, Kaizhou District of Chongqing has further adjusted and improved the long-term management and control mechanism for preventing and defusing major risks in the financial field , the relevant person in charge of the District Financial Service Center said that last year, Kaizhou District concentratedly cleaned up a batch of suspected illegal fund-raising advertisements such as "blockchain", and successfully resolved the risks of suspected illegal financial activities such as private equity investment funds. [2019/1/16]

The core of the illegal fund-raising regulations is the discussion of illegal fund-raising behavior, the foothold is "the act of absorbing funds from unspecified objects", so what is "unspecified objects" and what is "funds", we analyze concisely, "unspecified "Object" is a term that corresponds to a specific object such as a unit employee. To achieve an unspecified effect, simply converting customers into employees or labeling miners cannot achieve the effect of "convicted". Criminal law generally views the world as "Penetrated", not several contracts and several disclaimers can be offset. The current sub-optimal solution is to specify qualified investors in accordance with the relevant regulations on private equity.

As for the word "capital", BTC is a virtual commodity, most tokens of ICO are data, and USDT has become a tool for payment and settlement because it is anchored to the US dollar (foreign legal currency) and has good liquidity. Therefore, in judicial practice, various case-handling agencies are more inclined to identify USDT as "funds". That is to say, if a project party or a foundation publicly absorbs USDT to the public and gives "expected returns", it will be identified with a high probability For illegal fund-raising, and even directly involved in crimes.

Golden Morning News | Beijing Mutual Finance Association reminds that the risk of illegal fundraising in the blockchain is only $1,567 for Bitcoin mining: 1. Beijing Mutual Gold Association: Prevent the use of "virtual currency", "blockchain", "ICO" and its variants. Risk of illegal fundraising.

2. Deputy Secretary-General of the Insurance Society of China: The biggest challenge in the application of blockchain in the insurance field is the shortage of talents.

3. Russian lawmakers suggest switching to gold-backed cryptocurrencies for arms exports.

4. The Cyprus cabinet formed a blockchain joint working group.

5. India uses a national digital currency to cut $90 million in bills.

6. Wal-Mart applies blockchain technology to establish a robot certification team.

7. The Chicago Board Options Exchange (CBOE) may launch Ethereum (ETH) futures at the end of 2018.

8. U.S. stocks closed today, and U.S. blockchain concept stocks generally closed down.

9. Bitfarms, a Canadian cryptocurrency mining company, said it only cost $1,567 to mine a bitcoin in the first half of this year. [2018/8/31]

Illegal Fundraising Facilitator

Special emphasis: "Illegal fund-raising facilitators" refers to units and individuals who knowingly provide assistance to illegal fund-raising and obtain economic benefits. Websites, Apps, Internet information service providers, advertisers, and even public accounts and spokespersons may become illegal fund-raising facilitators.

Datong City carried out publicity and prevention of illegal fund-raising activities such as virtual currency: Datong Evening News reported on June 14 that recently, the Office of the Leading Group for Dealing with Illegal Fund-raising in Datong City launched a publicity month for preventing illegal fund-raising. For fund-raising activities such as speculation in the name of wealth management, investment and wealth management, private equity, project investment, cooperative development, virtual currency, and consumer rebates, timely risk warnings will be given. [2018/6/14]

Its legal consequences are: if the illegal income collected is refunded, it may also face a fine of 1-3 times the illegal income; if it is serious, it will be based on the crimes suspected of the illegal fund-raising actor, such as the crime of illegally absorbing public deposits, the crime of fund-raising fraud, and the crime of illegal business operations. Auxiliary criminals who commit crimes such as organization and leadership pyramid schemes will be dealt with, and the sentence will be relatively high, depending on the amount involved, the number of people involved, and the circumstances of the evidence.

Here, I would like to remind technical solution providers not to be lucky, and don’t think that selling kitchen knives has no criminal law risks. If your kitchen knife is a special murder weapon for the perpetrator, you still have to bear the criminal responsibility of helping the criminal (in some inland cities, Defining technical assistance as a crime of aiding information network crimes, the legal source is Article 287-2 of the Criminal Law). At the same time, lawyers and accountants are reminded to focus on learning the legal characterization of "neutral helping behavior", not to take millet out of the fire, to avoid becoming an accomplice of criminal acts, and to strictly abide by professional ethics.

The leading department for dealing with illegal fund-raising organizes investigations into suspected illegal fund-raising activities. The objective evidence it obtains can generally be directly used in criminal procedures. Please pay special attention. The administrative investigation measures organized by the leading department of illegal fund-raising include:

(1) Entering places suspected of illegal fund-raising to investigate and collect evidence; (Administrative investigations go to the workplace to collect evidence, generally not to the home address; criminal proceedings are all possible)

(2) Inquiring about units and individuals related to the incident under investigation, and asking them to explain the relevant matters; (In judicial practice, the relevant transcripts inquired by administrative organs must be converted before they can be used, and generally cannot be directly used as "convictions" for conviction and sentencing. Confession")

(3) Consult and copy documents, materials, electronic data, etc. related to the event under investigation, and seal up documents, materials, electronic equipment, etc. that may be transferred, concealed or damaged; If the computer is seized and taken away, the company under investigation can ask for a seizure list and keep the video data)

(4) With the approval of the main person in charge of the leading department dealing with illegal fund-raising, inquire about the relevant accounts suspected of illegal fund-raising according to law. (The sealing of the account is an important starting point, but for the wrong situation of sealing, such as the property of a third party outside the case, the share of the joint property of the husband and wife, etc., you can apply for unfreezing)

The number of investigators shall not be less than 2, and they shall show law enforcement certificates. At the same time, please note that the administrative investigation of illegal fundraising must cooperate, there is no so-called "right to silence", and no rejection or obstruction is allowed.

With the approval of the main person in charge of the leading department for dealing with illegal fund-raising, there are two important measures that can be taken: (1) seal up relevant business premises, seal up and seize relevant assets; (2) order illegal fund-raisers and illegal fund-raising assistants to recover and sell them at a price The relevant assets are used to clear the raised funds. As far as the (second) administrative measure is concerned, it is also known as "withdrawal of funds" in the market. Whether it will conflict with the criminal procedure that must go through the final trial before the funds can be refunded remains to be observed in practice. It is recommended to set up a cohesive mechanism to prevent The loss of assets involved in the case caused problems for the stakeholders.

At the same time, the leading department of the local people's government at or above the districted city level to deal with illegal fund-raising has decided to notify the entry-exit border inspection agency in accordance with regulations to restrict illegal fund-raising individuals or controlling shareholders, actual controllers, directors, supervisors, and executives of illegal fund-raising units. and other directly responsible persons leave the country. This also gives the local illegal fund-raising leading department a real power, that is, to make a decision to "restrict exits", instead of having to negotiate with specific case-handling agencies to decisively restrict exits, so as to prevent long nights and dreams.

If state functionaries are "lazy" in handling illegal fund-raising, the regulations also provide disciplinary arrangements:

(1) Knowing that the subjective and supervised units are suspected of illegal fund-raising activities, but failing to deal with them in a timely manner according to law; (severely punish lazy administration)

(2) Failing to perform the duty of preventing illegal fund-raising in a timely manner in accordance with the regulations, or failing to cooperate with the disposal of illegal fund-raising, resulting in serious consequences; (When there are serious consequences, it will investigate whether various departments have performed their preventive duties, please do a good job in criminal compliance work)

(3) Abuse of power, dereliction of duty, favoritism and malpractice in the process of preventing and handling illegal fund-raising; (this is not only a matter of punishment, but also a problem of crime)

(4) Supporting, covering up, and condoning illegal fund-raising through professional behavior or the use of professional influence. (There is a tendency to help criminals here. The person in charge of the supervision department must draw a clear line with the person under supervision, and do not drag and pull to prevent being corrupted.)

Where the preceding paragraph constitutes a crime, criminal responsibility shall be investigated according to law. This sentence seems useless, but it actually shows that these obligations are "guaranteed" by the criminal law, which participates in economic life and regulatory activities.

The above is today's content, thank you readers! In the question, what is it after three years? , due to a clerical error! .


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