Three Core Questions and Answers about Domestic Cryptocurrency: Policies Haven't Loosened, and Fund Security is the Bottom Line

Regarding whether U merchants can operate, the safety of fund inflows and outflows, and whether policies have loosened, the core conclusion is only one: domestic virtual currency-related activities still belong to high-risk zones, and the policy direction has never changed.

1. U Merchants and Related Transactions: Clearly Illegal, Crossing the Line Equals Risk

Domestic regulation has long explicitly prohibited illegal financial activities related to virtual currencies. Buying and selling currencies, exchanging U, operating as U merchants, or facilitating transactions are all prohibited, and there is no compliance space whatsoever; essentially, it is touching the regulatory red line.

2. Risks in Fund Inflows and Outflows: Fund Trajectories are the Biggest Minefields

Bank risk control has achieved millisecond-level identification of abnormal transactions, and the flow of funds related to virtual currencies is highly likely to trigger risks. There could be limits on bank cards, freezing of accounts, and requests to verify the purpose of funds. Those involving cross-border funds could even be treated as illegal operations, with no guarantee of fund security.

3. The Truth about New Regulations: Not Relaxation, but Precise Regulation

The new regulations implemented on January 1, 2026, do not relax policies:

The cancellation of “registration for cash deposits and withdrawals above 50,000” simplifies the process for low-risk businesses, while abnormal transactions will still be strictly checked; real-name verification for cross-border remittances over 1,000 USD is a requirement for anti-money laundering and does not affect the annual limit of 50,000. The core of the new regulations is “to open what should be opened and to control what should be controlled,” and the precision of regulation has significantly increased.

Core Conclusion

Currently, it is best for U merchants not to engage, as fund inflows and outflows may trigger risk control at any time; the policy has only shifted towards refinement rather than relaxation. The iron rule for domestic cryptocurrency trading is: safety is always the highest return; it is better to earn less than to let funds disappear into thin air.