Recently, the legal issues of bank card freezing caused by the conversion of USDT into RMB have become increasingly prominent, which has made some players in the cryptocurrency circle begin to seek new ways to withdraw funds. Among them, the Mastercard U card, as a way to recharge virtual currency and make domestic consumption, has gradually entered their sight. Although this approach seems to be an effective way to avoid the risk of card freezing, it also comes with new legal risks.
MasterCard U Card payment mode
Many people are curious about how to use a Mastercard U card for domestic payments. In fact, this model is different from the domestic payment methods we are familiar with, but it also has its own unique features. To put it simply, the Mastercard U card is like an overseas bank card that can be used in China and can be recharged with virtual currency. For a better understanding, we can make an analogy: MasterCard is like the international version of UnionPay, while Paytend, which issues MasterCard U cards, is similar to a bank under the UnionPay system, such as China Construction Bank. In this way, the Unioncash Mastercard launched by Paytend, which is what we call the "MasterCard U Card", can be regarded as a special "co-branded card" launched by CCB, which is unique in that it supports the recharge of virtual currency. Users who hold this Mastercard U card can deposit cryptocurrencies such as USDT, BTC, ETH, etc. into the card.
Not only that, but this card can be used for cash withdrawals worldwide as long as there is an ATM that supports MasterCard. What's even more surprising is that even though it is an international bank card, it can also complete consumer payments in China without any obstacles. Whether it is Alipay, WeChat, or commonly used apps such as Meituan and Ele.me, you can use the Mastercard U card as a payment method. So, here's the question: if I recharge to a U card with virtual currency and then pay with a U card, will Alipay or the merchant receive virtual currency? The answer is no. In fact, whether it is Alipay or domestic merchants, they receive RMB. This is because after the user recharges the virtual currency to the U card, the card operator will settle the virtual currency into foreign currency. When the user consumes in China, due to the existence of an international settlement agreement, the merchant actually receives RMB, and the whole process does not involve the circulation of virtual currency.
Legal Risks of MasterCard U Card**
For the issuer or partner institution of the MasterCard U Card, its legal risks in China cannot be ignored. Although the exchange between virtual currency and foreign currency does not constitute an illegal act in most non-Chinese countries, due to China's foreign exchange control system, the relevant behavior may be suspected of "illegal foreign exchange" in China.
Specifically, if a Chinese user uses a virtual currency such as USDT exchanged in RMB to top up a U card and use the card to make consumption payments in China, then the issuer actually indirectly realizes the exchange between RMB and foreign currencies. Such an act may be recognized as "disguised foreign exchange trading" in the Chinese legal system, thus constituting the crime of illegal business operation. According to the interpretation of relevant laws, once the amount of illegal business reaches more than 5 million yuan or the amount of illegal income reaches more than 100,000 yuan, it is a situation of "serious circumstances".
However, it should be noted that since the first sentence standard for the crime of illegal business operation is "fixed-term imprisonment or criminal detention of less than five years", it may not be possible to hold overseas U card issuers accountable according to the principle of protective jurisdiction under the Criminal Law of the People's Republic of China. However, if the issuer has Chinese nationality or engages in relevant activities in China, then Chinese law can still govern and hold it accountable.
In addition, the issue of whether the U card issuer is aware that Chinese users use RMB to exchange virtual currency and deposit it into the U card is also one of the key factors in determining whether it constitutes the crime of illegal business operation. If the issuer is aware of this and has a high degree of involvement, it may face greater legal risks.
To sum up, although the MasterCard U Card provides a new way for players in the cryptocurrency circle to withdraw money, there are still certain legal risks associated with its use and promotion in China. Relevant parties should carefully assess the risks and comply with the provisions of Chinese laws and regulations to avoid possible legal disputes and losses.
That's it"MasterCard U Card"I hope it will be helpful to you
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