Recently, a customer came to Mankun for consultation. The basic case is as follows: As a foreign trade company in Guangzhou, the customer naturally intended to settle the payment through a legitimate channel after completing the transaction with a foreign company. However, the foreign company could not make the payment no matter what. Therefore, a feasible solution was proposed, “to settle the payment with USDT.” After careful consideration to avoid more trouble, the customer agreed and quickly received the USDT payment from the foreign company. Then, the customer found a domestic “service provider” to cash out (exchange USDT for RMB). The result of coming to Mankun Lawyer was predictable. After receiving the USDT, the “service provider” could not be contacted and there was no such person.

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Many people may think at first glance that the content of this consultation is related to “Online casino and How to find it, which is注定凶多吉少.” Considering that the regulatory policies for Online casino and How to find it vary from country to country, using USDT for payment has become one of the payment options for some foreign trade companies. However, in the traditional收款 ways of the foreign trade industry, there are many pitfalls (risks) itself. Is it really appropriate to choose USDT as a payment method?

01 Common difficulties in cross-border foreign trade merchants’ collection of payment

Small and medium-sized foreign trade companies are very likely to fall into traps when making cross-border payments, and some companies have even been deceived and have to exit the market in a dejected manner. Therefore, in foreign trade transactions, payment is a matter of great concern for both buyers and sellers. In small and medium-sized foreign trade companies, there is an increase in comprehensive costs, and operating risks and pressures are at a high level. To different degrees, there are phenomena such as “not daring to accept orders” and “increasing revenue without increasing profits.” This is because foreign trade companies will encounter many problems when collecting payments, including but not limited to: ①Long account opening process, slow payment timeliness, and high withdrawal fees; ②Too few supported currencies, existing channels do not support small currencies; ③Limited RMB withdrawal quota;④Unable to withdraw cash at real-time exchange rates; ⑤Unable to pay suppliers directly; ⑥Difficulties in receiving payments in high-risk areas; ⑦May even encounter card freezing, funds freezing, and other troubles. For domestic and foreign trade merchants, the collection of funds in cross-border settlements is a very important link, and the difficulty in collection is also a real problem faced. In order to avoid the difficulties that may arise in reality, many foreign trade merchants have now given up collecting funds through legal and compliant methods and channels, and more often than not, they resort to ‘underground money houses’ to achieve the recovery of funds.

02 Operation Model of Cross-border ‘Underground Money Houses’

Generally speaking, cross-border payment refers to the behavior of transferring funds across countries or regions due to international trade, international investment, and other aspects, which is realized through certain settlement tools and payment systems. In actual economic activities, there are still many domestic transactions that use ‘underground money houses’ as a settlement method for cross-border trade.

‘Underground money houses’ is not a clear and standardized legal concept, mainly referring to ‘a special illegal financial organization that operates outside the financial regulatory system and engages in illegal foreign exchange trading, cross-border (boundary) fund transfers, fund storage, and lending and other illegal financial activities’. In essence, it is an underground bank that operates without the approval of the state, engaging in financial businesses such as remittances, loans, and payment settlements, providing channels for corruption, gambling, smuggling, tax evasion, and other illegal activities (relevant regulations: People’s Bank of China’s ‘Anti-Money Laundering Report’ released in 2005, and the ‘Prohibition of Illegal Financial Institutions and Illegal Financial Business Activities’ promulgated and implemented by the State Council on January 8, 2011).

Although wearing the ‘illegal’ label, the existence and prosperity of ‘underground money houses’ have always been a public secret. Currently, the operation models of domestic ‘underground money houses’ mainly include three types: cross-border ‘counter’ model, ‘payment and settlement’ model, and other illegal business models.

1. Cross-border ‘counter’ model

This means using domestic delivery of RMB and foreign currency delivery overseas, a currency exchange method that does not cross borders in terms of funds (abbreviated as}}“跨境汇兑型模式”），实现资金实质上兑换和跨境转移。这也是目前地下钱庄的最主要运作方式，主要用于将境内非法所得等款项通过地下钱庄转移至境外以及在跨境贸易中通过地下钱庄进行逃汇。 download lottery download and Latest

2.“支付结算型”模式

即以虚假欺骗性手段，虚构或构造合法交易形式，掩盖其非法目的，实现非法跨境转移资金的“支付结算型”模式。如利用道具商品进出口实现资金跨境以及通过壳公司、假贸易进行公转私等。

3.其他非法经营模式

地下钱庄团伙运作模式往往多样化，也称综合型地下钱庄。如黄牛换汇、非法改装移机境外的 POS 机刷卡、银行卡境外刷卡提现、非法分拆购付汇、现金走私等方式也比较常见；为规避打击，近年来还出现利用Online casino and How to find it 、第四方支付平台非法跨境转移资金的情况。

总之，不管是上述哪一种模式，“地下钱庄”的获利方式大致可以概括为：通过低买高卖外币赚取差价，按照汇兑交易、资金拆借金额抽取“客户”一定比例的手续费或佣金，通过交易骗取政府奖励、出口退税等跨境套利等其他非法收益。

03 跨国贸易结算时选择收取 USDT 的风险

境内外贸商家在选择结算方式的时候，为什么会选择 USDT 收款，大概率是基于原本就存在的前述难题，选择 USDT 恰好规避了回款的一些困难，但是拿到手里的毕竟是Online casino and How to find it ，而非真金白银，收取之后是该选择持有、投资，抑或是变现，就是收取之后境内商家需要考虑的实际问题，Given the strict regulatory policy of our country on Online casino and How to find it at present, whether it is to collect, hold, invest or convert, it is a high-risk situation.

1. The risk of collecting USDT

If overseas buyers convert their foreign currency into USDT through “underground banks” or exchanges (OTC), domestic merchants provide them with wallet addresses to receive USDT, and overseas merchants pay USDT according to the requirements of domestic merchants, it seems that the timeliness of receiving payment through USDT is very fast, and it avoids restrictions on currencies, foreign exchange, and taxes. However, if we delve deeper into the analysis, we will find that since overseas merchants convert their own funds into USDT through “underground banks” or exchanges (OTC), it is difficult for domestic merchants to identify the legality of the source of funds, and the risk follows.

Assuming that the funds of overseas merchants are illegal, in the process of handling past cases, we can preliminarily predict that the reason why overseas merchants want to convert their own funds into Online casino and How to find it is to whitewash the originally illegal funds through “underground banks” or exchanges (OTC). As a link in receiving USDT (or other Online casino and How to find it ) for domestic merchants, they are very likely to be involved in the investigation process, and the failure to collect the foreign trade funds for this transaction is minor, but if it rises to be identified as a criminal offense, it is not worth the loss.

2. The risk of holding USDT

After domestic merchants collect USDT, if there is no aforementioned criminal risk, can they rest assured that they can keep the money? In fact, it is not the case. The value of Online casino and How to find it in China may not be reflected, but some countries have already confirmed that Online casino and How to find it belongs to legal property. If domestic merchants receive USDT and do not exchange it into RMB immediately,Plan to watch the international market situation before making arrangements, and it just so happens that the USDT in my hand has appreciated, why not do it?

However, the theft of online casinos and how to find them (whether it is Bitcoin or USDT) is no longer a new thing in the cryptocurrency circle. It is believed that in order to have a sliver of hope for recovery, domestic merchants will choose to try criminal reporting. But affected by the current domestic laws and regulatory policies, combined with our past cases, and considering the judicial documents of publicly disclosed criminal cases, whether online casinos and how to find them have property attributes is the key to determining whether they can be identified as criminal offenses. Currently, some courts recognize the property attributes of online casinos and how to find them, and they will generally file for investigation and prosecution for theft; however, from practical experience, whether a criminal case is filed or not, the difficulty of recovering the stolen online casinos and how to find them (USDT) in full is relatively high.

3. Risks of investing in online casinos and how to find them

Of course, holding USDT is not the ultimate goal of domestic merchants, and they ultimately want to gain something through USDT, so they may use the collected USDT for investment. In most cases of real economic activities, when entrusting others to invest on their behalf, a written contract is usually not signed, which is what Zhou lawyer often refers to as ‘naked running’ investment. In the event of ‘investment failure’ (it may be that the project really failed, or the project party did nothing at all), the court generally identifies the establishment of the entrusted investment contract based on materials such as chat records and transfer records between the parties. However, the establishment of the entrusted contract does not mean its validity, and there are a large number of judgments in the court that consider the contract to violate financial regulatory policies, the online casino and how to find it itself as an illegal subject matter, or the contract to violate public order and good customs, thereby determining the contract to be invalid; of course, there are also a small number of typical cases that recognize the validity of the contract for entrusting the investment in online casinos and how to find them.

Online casino and How to find it is deemed an invalid contract, and the legal consequences are also different. Some courts require both parties to bear partial responsibility; some courts believe that according to the ‘Notice on Preventing Risks of Token Issuance and Financing’, the investor’s investment behavior should bear the risk by himself; and some courts believe that the related debts of Online casino and How to find it are illegal, so the law does not protect the investor’s property.

Therefore, if domestic merchants engaged in cross-border trade receive USDT and consider it for investment, they should be aware of the possible consequences of the invalidity of the entrusted investment contract and bear the risk, and make investment decisions cautiously.

4. Risks of USDT liquidity

Whether it is the traditional collection method or receiving USDT, the main purpose of domestic merchants is to receive the payment and realize the turnover of capital flow, just like the customers who came to consult at the beginning, that is to say, the ultimate goal is to exchange USDT for RMB. However, according to China’s existing regulatory policies, the possibility of legally exchanging USDT for RMB through domestic institutions is negligible, so the only way to liquidate is to choose: exchanges, over-the-counter OTC (or underground banks). Regardless of which service provider is chosen, it has broken through the legal and regulatory procedures of cross-border RMB entry. The process of receiving payment through USDT can be briefly described as: overseas merchants exchange foreign currency for USDT → domestic merchants provide wallet address to overseas merchants → overseas merchants transfer USDT to the wallet address provided by domestic merchants → domestic merchants exchange USDT for RMB through exchanges, over-the-counter OTC (or underground banks), perfectly breaking through the national foreign exchange and tax management system, and overcoming the problem of slow timeliness. However, the risks are numerous. If the RMB exchanged from USDT contains illegal funds, it may result in the freezing of bank cards or funds, and the public security organs require cooperation in investigation, with the defrosting far in the future; there is also a possibility of being involved in criminal cases such as money laundering and concealing the proceeds of crime. Even if the RMB exchanged from USDT is all legal funds, breaking through the legal and regulatory procedures of RMB entry may constitute illegal foreign exchange trading, tax evasion, etc. Once relevant units investigate, it is also possible to be subject to criminal or administrative penalties.

Of course,Even if relevant national units or departments do not pursue the matter, the process of converting USDT is not necessarily a sure thing. Just like the clients who consulted us at the beginning, the situation where service providers lose contact and run away after receiving USDT is not an isolated case. It is also because the current regulatory attitude of our country is strictly prohibiting the speculation of Online casino and How to find it, it can be imagined that it is relatively difficult to recover the USDT that has already been paid. In this way, it was originally believed that the difficulties of foreign exchange, taxation, high transaction fees, and slow time-effectiveness could be avoided, but in the end, it may end up with nothing.

04 Summary by Man昆 Lawyer sports betting method and Latest

To this point, I believe that domestic merchants have their own ideas about whether to choose USDT (or other Online casino and How to find it) for settlement. As a law firm engaged in the web3.0 industry, we have been paying attention to the process of legalizing Online casino and How to find it in China. It can only be said that it is still in the stage of strict regulatory measures. It is recommended that domestic merchants choose cross-border settlement methods on the premise of legality and compliance. Finally, let’s summarize the topic we discussed today:

1. The main reasons for the difficulty in receiving payments for cross-border trade merchants are: long account opening procedures, slow receipt time, high withdrawal fees; too few supported currencies, existing channels do not support small currencies; limited renminbi withdrawal quota; unable to withdraw at real-time exchange rates; unable to pay suppliers directly; difficulties in receiving payments in high-risk areas; may even encounter frozen cards, frozen funds, and other troubles.

2. The operational modes of underground money exchangers for cross-border payment mainly include 3 types: cross-border “matching” mode, “payment and settlement” mode, and other illegal business models. Regardless of which one, it may result in criminal or administrative penalties.

3. The main risks of receiving USDT in cross-border trade settlement are: (1) The risk of not being able to recover funds, even possibly becoming a part of a criminal offense; (2) The risk of holding USDT: large price fluctuations leading to depreciation, or being unable to recover after being stolen; (3) The risk of investing in USDT: there is a possibility that the entrusted investment contract may be declared invalid and bear the risks independently; (4) }}The risks of converting USDT: Loss of funds due to the escape of exchanges or OTC trading, violation of national regulations on foreign exchange, taxation, and other related regulations, and may result in criminal or administrative penalties.