According to the South China Morning Post, raising donations using cryptocurrencies is now considered an illegal activity in China, according to a new legal interpretation from the country’s Supreme People’s Court.
The new restriction is part of a broader set of legislation aimed at preventing financial fraud in the country, which has long been known for its anti-cryptocurrency campaign.
Penalties for incarceration
According to the Supreme People’s Court’s opinion published on Thursday, the consequences of crypto fundraising are dependent on the quantity raised.
The legislation, which takes effect on March 1, indicates that Chinese courts can now officially sentence offenders to prison terms ranging from less than three years to more than ten years.