Regulatory Challenges in Cryptocurrency
In a recent case underscoring the regulatory challenges within the cryptocurrency industry, a 34-year-old individual named Xie Jiajie has received a 10-month prison sentence. Xie was found guilty of overseeing cryptocurrency exchange activities without the necessary legal authorization. His actions took place under the supervision of Liu Hanquan, who was reportedly running unlicensed operations while Xie actively facilitated a staggering 430 transactions, cumulatively exceeding 35 million yuan, over a span of just 23 days. Law enforcement apprehended him during a police operation targeting illegal currency practices.
Legal Repercussions
Xie faced legal repercussions under the Payment Services Act and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act. He entered a guilty plea for one of the charges, while the court took into account the other allegations during his sentencing on June 26.
Involvement of Sir Money Changer
The case implicates Sir Money Changer (SMC), a legitimate family-run business utilized for legal currency exchange and cross-border money transfers, which is operated by the Mohamad couple. In June 2021, SMC broadened its operations in Geylang, at which point Liu Hanquan proposed a deal—paying 14,000 yuan per month to leverage SMC’s license for personal remittance activities. Liu brought his own staff into the fold while deceitfully using SMC’s business name to address social security contributions, which he later reimbursed.
Unauthorized Activities and Liu’s Disappearance
Subsequent to September 2021, Liu engaged in unauthorized cross-border remittances and transactions involving Tether without informing the Monetary Authority or providing transaction records. Upon the exposure of these illicit activities, Liu vanished, fleeing to Cambodia, where he drained his cryptocurrency wallet. He is currently evading law enforcement and remains untraceable.
