Is “exchanging U” a safe haven or money laundering? Gray areas in judicial practice
In everyday contexts of cryptocurrency trading, “exchanging U” is usually understood as converting Bitcoin (BTC) or Ethereum (ETH) into Tether (USDT). Because USDT is pegged to the U.S. dollar, its price fluctuates far less than major crypto assets. When market conditions are highly volatile, investors often choose to “exchange U,” which is frequently seen as a risk-avoidance strategy similar to selling off stock and holding cash—intended to lock in profits or reduce drawdown risk. However, in judicial practice, especially when determining the offense of money laundering, this seemingly neutral technical operation falls into a gray area of legal interpretation. In 2024, the “Two Highs” judicial interpretation on the crime of money laundering, Article 5, Item (6), clearly stipulates that, through transfers involving virtual-asset transactions, financial-asset exchanges, conversion crimes
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In everyday contexts of cryptocurrency trading, “exchanging U” is usually understood as converting Bitcoin (BTC) or Ethereum (ETH) into Tether (USDT). Because USDT is pegged to the U.S. dollar, its price fluctuates far less than major crypto assets. When market conditions are highly volatile, investors often choose to “exchange U,” which is frequently seen as a risk-avoidance strategy similar to selling off stock and holding cash—intended to lock in profits or reduce drawdown risk. However, in judicial practice, especially when determining the offense of money laundering, this seemingly neutral technical operation falls into a gray area of legal interpretation. In 2024, the “Two Highs” judicial interpretation on the crime of money laundering, Article 5, Item (6), clearly stipulates that, through transfers involving virtual-asset transactions, financial-asset exchanges, conversion crimes
Follow me—my next post for quick scan of the market is worth not missing.