jakiro
introduction:
According to my country’s current regulatory policies and judicial practice, the property attributes of virtual currencies have been affirmed, but it is forbidden to use currencies to be issued and traded in China.Defi is a series of financial businesses based on blockchain technology and the main body of virtual currency.Under my country’s strong regulatory situation, operators of DEFI -related businesses will set up the operator overseas.Can this bypass supervision and avoid domestic criminal legal risks?This article takes everyone to understand DEFI and the criminal legal risk of doing DEFI projects in the country.
What is DEFI?
Defi (Decentralized Finance), that is, “decentralized finance”, corresponds to the concept of “centralized finance” of CEFI (Centralized Finance).
The existing financial system banks, securities exchanges, etc. are CEFI. DEFI can be regarded as a parallel world of real finance. The financial stack of DEFI has five main components: stabilization currency, exchanges, currency markets,, currency markets,, currency markets,Synthetic currency, insurance.Stable currency as a bridge for linked fiat currency and virtual currency is of great significance to the DEFI financial system; decentralized exchanges can allow users to conduct point -to -point transactions without intermediaries; the Defi currency market is completely transparent, and anyone can view it at any time.The number of loans issued by the loan pool to ensure that there are enough cryptocurrencies to support unpaid loans; synthetic assets represent financial instruments composed of one or more asset derivatives, which means that they are not initial assets, not initial assets, not initial assets, not initial assets, not initial assets, not initial assets, they are not initial assets.It is synthetic.For example, the US dollar is an initial asset, while USDT is suitable for anchoring the US dollar and the introduction of a blockchain synthetic asset; insurance, which is divided into centralized insurance and decentralized insurance, decentralized insurance can be fasterCompensation and higher flexibility.
Defi application and common risk
DEFI can realize the flow and distribution of funds through smart contracts instead of a third -party centralized organization. It is often applied to the following fields:
1. Loan.In DEFI borrowing, transactions are executed through smart contracts, and the borrowing type is excess mortgage.
2. Financing.The financing on the blockchain is a return on the tokens (ICO).
3. Derivative products.For example, Synthetix is a synthetic asset issuance agreement based on Ethereum.Users can cast, hold and trade various synthetic assets.Users can obtain multi -headed and short -term assets through comprehensive assets.
4. Decentralized transactions.For example, Uniswap, DEX (decentralized exchange) allows users to trade directly on the chain without intermediaries.
At present, DEFI -related applications still have a lot of risks.
1. Due to the lack of regulatory review, the potential security loopholes and instability of DEX will make users face capital security and liquidity risks.
2. Due to the irreversibility of smart contracts, the transaction cannot be revoked. If the user is fraudulent or operating errors during the transaction, the loss will be difficult to recover.
3. Project funds in the DEFI ecosystem originated from the liquidity provided by users. If a large number of users withdraw money, it may lead to insufficient liquidity and cause risks.
Criminal risks involved in the DEFI project will involve
my country is illegal financial activity for virtual currency -related businesses, such as legal currency and virtual currency exchange, tokens issuance financing, derivative transactions, etc.Therefore, doing DEFI involves the following criminal legal risks.
1. illegal business crime
DEFI, as the parallel world of the real financial system, provides products and services such as borrowing transactions, asset management, financial management, insurance, derivatives and other products. According to the provisions of the criminal law, the corresponding qualifications and licenses are not obtained.DEFI products provide mortgage borrowings, support the settlement settlement between virtual currency and fiat currency, and related financial businesses are based on virtual currency transactions and are suspected of illegal business crimes.
2. The crime of illegally absorbing public deposits and fundraising fraud
The project party issued Tu Dou coins and cottage coins, and later promoted the publicity of communities, KOL, roadshow and other methods, to seduce domestic users to buy on DEX.If investors have reported collective rights in collective rights, the project party is suspected of illegally absorbing public deposits and fund -raising fraud.
3. Organization and leadership of MLM activities
Virtual currency mining projects, faked in the name of DEFI mining, borrowed the model of gaining liquidity mining by pledge LP, but in essence, according to the head of entry fees as the rebate basis, they are suspected of organizing and leading MLM activities.
4. The crime of opening a casino, gambling, and organizing participation in the country (border) outside the country (border)
Due to the anonymity of blockchain technology, the characteristics of decentralization, and the use of smart contracts, gambling games can be built on the development and design of blockchain technology.If the game GAMEFI (GAME+DEFI, Chain Tour) has the function of gaming tokens, it may constitute a crime of gambling in my country’s criminal law.
In view of the above, relevant persons in the industry adopt a curve to save the country to open DEFI -related businesses abroad to avoid my country’s supervision.So,The project is carried out abroad. Can people do “remote control” in China?The answer is negative.
According to my country’s “Criminal Law” on jurisdictionThe territorial jurisdiction and human jurisdiction.The territorial jurisdiction, that is, as long as the criminal or result occurs in the field of my country, my country has jurisdiction; the jurisdiction of human beings means that as long as it is a Chinese, it is criminal in my country, and my country also enjoys jurisdiction.
According to Article 2 of the Criminal Procedure Law of the People’s Republic of China (2021), the crime of crime in response to or mainly uses the crime implemented by computer networks, including the location of the server used for the network service for the implementation of criminal acts, the location of the network service provider, where the network service provider is located.The infringed information network system and their managers are located. During the crime, the location of the information network system used by the defendant and the victim, and the place where the victim was violated and the victim’s property suffered losses.
Therefore, as long as the Chinese crime, or criminal acts or results in China, my country has the right to manage it.
In addition, according to the following regulations, personnel who provide services such as marketing publicity, payment settlement, and technical support are responsible.
According to the “Notice on Further Preventing and Disposing the Risks of Virtual Currency Transactions” 1. (3) Overseas Virtual Currency Exchange provides services to residents in my country through the Internet that is also illegal financial activities.For domestic staff of relevant overseas virtual currency exchanges, andKnowing or knowing that they are engaged in virtual currency -related businesses, they still provide them with marketing publicity, payment settlement, technical support, etc.The legal person, illegal organization, and natural persons serve in accordance with the law.
Conclusion
The Internet has no borders and criminal risks.Operating the DEFI project abroad, even if the IP address of my country is blocked, it cannot guarantee that the Chinese do not use related services, and it is difficult to avoid my country’s criminal legal risks.
