Overnight, BTC continued to trade around the 30-day moving average of 105k. Today, the June 5th Teaching Chain Internal Reference "Circle, the First Stablecoin Stock, US Stock IPO" mentioned another major industry event, that is, the financial regulatory agency MAS in Pa County issued a new regulation at the end of May, which greatly tightened the loopholes for the encryption/web3 industry. The new regulations will take effect at the end of June without any buffer period. The attitude is quite tough!
From the so-called "crypto paradise" to the order to expel guests, this cliff-like policy adjustment can't help but make the encryption industry exclaim that the Pa County web3 retreat is coming.
The sky has fallen for the Pa County big cutters.
Why do you say that?
Jiaolian still remembers that more than three years ago, in February 2022, the Supreme Court issued a judicial interpretation (Fa Shi [2022] No. 5), which listed "illegally absorbing funds through virtual currency transactions and other means" as one of the behaviors of illegal fundraising, and for the first time included virtual currency transactions in the scope of regulation of illegal fundraising at the criminal law level.
This is to plug a loophole. Previously, illegal fundraising and fundraising fraud only recognized RMB (and some legally recognized forms of property). In other words, you are only considered illegal if you receive RMB from others. Receiving BTC, USDT, or other virtual currencies is not illegal. Why? Because we are a continental legal system country, and we only recognize legal provisions. If there is no provision in the law, it does not count.
This illegal fundraising and fundraising fraud are crimes in the criminal law. Once violated, they will be subject to the most severe criminal sanctions. But it is precisely because of such a loophole that the big cuts of BTC and USDT in the hands of leeks who issued air coins that year took advantage of the legal loopholes and went unpunished.
And it is precisely because of this loophole that our country's judicial crackdown on some coin-issuing scams in those years was far weaker than that of the United States on the other side of the Pacific. The United States is a maritime law system, and it does not apply laws rigidly, but focuses on flexibility. So you see, the US SEC directly moved out the OmniVision test net, and caught a lot of big and small fish at once, and directly accused you of illegal securities issuance. Those who should be arrested should be arrested, those who should be sentenced should be sentenced, and those who should be punished should be punished. How happy.
Of course, how to grasp the boundary between protecting innovation and combating fraud is an art. The US SEC has been hitting hard for several years and has successfully aroused the disgust of the entire crypto industry. When the crypto industry pushed Emperor Chuan to ascend the throne, the first thing it did was to drive SEC Chairman Gary Gensler out of office. This is a later story, so I won't discuss it here.
Let's talk about our judicial interpretation. The most fatal problem for the big cuts here is that it is a judicial interpretation, not a revision of the law.
Friends who know the law know that there is a legal principle called "laws do not have retroactive effect". This means that the laws revised today are only applicable in the future, and cannot be retroactive to the past, and cannot be used to judge yesterday's things with the laws revised today. Otherwise, it would be terrible. The whole society will be in danger, and it will be completely meaningless to do what is not prohibited by law, because you don't know whether today's things will be redefined as illegal tomorrow. Without certainty, society will fall into chaos.
However, there must be exceptions to the principle. The principle of "laws do not have retroactive effect" only applies to the revision of laws, not to judicial interpretation. In other words, if the existing laws are interpreted in an expanded way through judicial interpretation, then it is theoretically allowed to be retroactive. In other words, it is theoretically feasible for the judicial interpretation issued in 2022 to crack down on the issuance of coins in 2017.
So, the big cuts that have been shouted by everyone in the country almost fled overnight, like birds and beasts.
The escaped dacai looked around. The world is so big, where can they stay? Go to the United States? Afraid of being wiped out by the American iron fist. Go to Dubai? Afraid of being kidnapped and beaten. After looking around, the dacai unanimously took a fancy to Po County, which is a mixture of Chinese and Western cultures and has loose supervision. Except for the higher cost of living, other aspects are almost the same as living in China (such as language, time difference, etc.), which makes the dacai who are wandering in a foreign land less homesick. As for the cost of living, for the dacai who have become billionaires, it is naturally a drop in the bucket.
The key is that Po County and mainland China do not have a bilateral extradition treaty, which makes the dacai feel quite at ease. As early as the bull market cycle in 2017, Po County adopted an extremely relaxed policy on coin issuance and fundraising. Simply put, you can issue and collect as you like, as long as you block Po County people and don't collect Po County people.
Recalling the ICO coin issuance wave in full swing in 2017-2018, various fancy coin issuance methods were invented, such as forked coins, public chain coins, ERC-20 coins, and even pure air coins. The issuance speed could not keep up with the speed of the leeks' crazy rush. If you grab it, you will earn it. The so-called private placement quota can only be obtained through connections and backdoors. Buy it at a low price and sell it to the next buyer, making dozens of times the profit. The entire crypto market fell into an irrational carnival. It was not until the deep bear at the end of 2018 that the cold losses calmed down the hot heads of the leeks.
In such a crazy market, there may be only two kinds of people: one is a gambler, and the other is a liar. Maybe there are some people who are both gamblers and liars.
No one can keep a cool head in front of the vivid examples of their friends who get rich overnight. No one can hold a sickle and watch billions of wealth in front of them without harvesting it. Holding a sharp weapon, the killing intention arises. Moreover, in such a market where everyone has lost their minds, the so-called sharp weapon only needs a eloquent mouth. Everyone is lost in the flying money. "I am not gambling, nor am I cheating. If you don't make money, you are a bastard" has become the motto and life creed in the hearts of many people. All good things must come to an end. The violent joy will inevitably usher in a violent end. When the drumbeats of passing the parcel suddenly stopped, trampling began to appear. Private equity cut public equity, project parties cut private equity, and the sickle cut each other became the last glimmer of light before the industry went to the death of the bear market. Those who locked their positions became idiots. Those who sold at high positions became winners. The big cuts of issuing coins and raising funds made a lot of money, while the gamblers who chased the rise at high positions lost their underwear. Gamblers accused the liars of playing with the market and not being moral. The liars accused the gamblers of not abiding by the rules of the casino and willing to accept the loss.
The so-called "compliance" that was popular at that time was to register a so-called foundation in Po County as the main body of the currency. This so-called compliance is in line with the rules of Po County, and the people who are harvested are the people in the mainland. But which of the harvested leeks is not sending their heads thousands of miles away? Going over the wall and registering a fake identity is just to use the precious pie in their hands to exchange for other people's air coins. Which one is not blinded by lard, wanting to take the low-priced chips and sell them at a high price to the stupid leeks behind, so that they can reap a lot of the later ones and become rich?
Zhou Yu beat Huang Gai, one is willing to fight, and the other is willing to be beaten. In the end, no one is purer than the other, no one is kinder than the other, and no one is more righteous than the other.
So the big harvesters of that year also harvested with peace of mind-"They are all gamblers with bad intentions. Cutting them is also regarded as acting on behalf of heaven!"
Whenever the leeks want to do something big, they will be done big. God is too lazy to come to the rescue of a small leek like you. There are big cuts, hackers, runaway platforms, telecommunications fraud, and other forms of tricks to harvest you.
The mantis stalks the cicada, unaware of the oriole behind. As the saying goes, good things come in turns, and heaven will not let anyone get away.
In February 2022, the judicial interpretation came, and the big cuts fled in panic.
For a while, many cuts gathered in Po County, and coffee shops and five-star hotels were full of voices talking about web3 and encryption topics in Chinese or a mixture of Chinese and English. A large number of KOLs on various social platforms also praised the prosperous scene of Po County, and did not forget to pull one and step on one, pulling out Hong Kong, which was still insisting on strict supervision at the time, and belittled it, saying that it might lose its position as an Asian financial center in the web3 era because of its insufficient openness in thinking and supervision.
Po County embraces encryption without defense, perhaps just because it has not suffered the market's beating, and has not felt the power of the big harvesters' unscrupulous harvest.
In November 2022, FTX, the once popular fried chicken and the world's second largest encryption trading platform, went bankrupt. The wealth of countless investors was wiped out overnight. Temasek, a sovereign wealth fund wholly owned by the Po County government, invested a total of US$275 million in FTX in two rounds from October 2021 to January 2022. After FTX went bankrupt, Temasek announced a full write-off of its investment and admitted that its trust in the founder SBF was "misjudged."
In addition, there are a series of other cases of encryption fraud, money laundering, etc., which may have prompted the Po County government to begin to reflect on whether the unguarded policy attitude in the past was really beneficial.
These reflections eventually converged into the new regulations issued at the end of May 2025, the "Guidelines for the Issuance of Licensing for Digital Token Service Providers." The wild era of unlicensed operation of web3 in Po County has closed the door.
Catherine
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