What areas does the "Cybercrime Prevention Law" (Draft for Comments) expand?
1) The scope of OTC is expanded
The common defense in U commercial OTC is: I am just trading, I don't know the other party is dealing with dirty money.
The current change no longer only looks at whether you really know, but it is easier to presume that you should know.
What situations are more easily presumed?
Significantly abnormal prices (high price for buying U, low price for selling U)
Abnormal transaction frequency/amount (large amounts in a short period, splitting orders)
Using encrypted chat software, jargon, evading supervision
Not doing strict KYC (even leaving no trace)
Continuing to trade despite unclear explanations of the other party's source of funds
2) The scope of providing assistance has expanded
Supporting behaviors include
Development
Operation and maintenance
Advertising promotion
Application packaging
Technical support
As long as you know the other party is engaged in illegal activities, providing these may be considered as assistance.
3) Overseas is also not safe
The draft clearly includes two categories of people in the jurisdiction
Chinese citizens abroad
Overseas organizations/individuals providing services to users within China
This means that if you are doing projects overseas, and your service objects include mainland users, you may also be held accountable.
4) Public chain nodes/blockchain services are included in the governance objects
Blockchain service providers are required to have the ability to:
Monitor
Block
Handle illegal information/payment settlement
However, truly permissionless public chains cannot achieve single-point blocking.
In other words, chains/nodes operating within mainland China will face two paths:
Change to consortium chains/auditable chains (with backdoors)
Or be non-compliant (legal risks)
5) Regulatory focus has shifted from financial risks to the chain of cybercrime
Previously, regulation mainly focused on:
Illegal fundraising
Financial order
ICO, exchanges
Now the focus has shifted to:
Fraud
Money laundering
Black industry
Flow of funds in cybercrime
It is no longer just about whether there is speculation on coins.