Encryption Industry Dynamics: The Truth Behind the "Mo Pai" Incident in Hangzhou Surfaces

Recently, there has been new progress regarding the "investigation" incident in the encryption industry in Hangzhou. After multiple verifications, including inquiries with local judicial authorities and information obtained through other channels, the claim that the Hangzhou police are conducting a systematic investigation of encryption practitioners has been confirmed as false information.

Event Review and Truth Revelation

Previously, someone posted an article on social media claiming that the Hangzhou police were conducting a systematic investigation of encryption currency practitioners. This news has attracted widespread attention and discussion within the industry. However, after thorough investigation and verification from multiple sources, this claim has been confirmed to be false.

The actual situation is likely that a larger local team related to cryptocurrency in Hangzhou is involved in the case, which may involve foreign exchange-related crimes, initially judged as illegal business operations. The previously circulated information may have originated from involved personnel or witnesses cooperating with public security investigations. There are reports that some cryptocurrency practitioners in Hangzhou have indeed been missing for several days, and the teams they belong to are not small.

Warning to the encryption industry

Although the rumors of "摸排" have been confirmed to be misinformation, this incident still serves as a wake-up call for the encryption industry. Currently, the regulation of cryptocurrency-related activities in the mainland remains strict. Practitioners should keep the following points in mind:

1. It is strictly forbidden to exchange virtual currency for fiat currency.
2. The exchange of virtual currencies between each other is not allowed.
3. It is prohibited to act as a central counterparty for the trading of virtual currency.
4. Do not provide information intermediary and pricing services for virtual currency transactions.
5. Prohibit token issuance financing and trading of virtual currency derivatives.
6. No trading platforms may be established (whether domestic or foreign) to provide services to mainland residents.
7. It is prohibited to provide various services for overseas virtual currency exchanges.
8. The name of the enterprise must not contain terms such as "virtual currency", "virtual assets", "encryption currency", "encryption assets", etc.
9. Prohibition of engaging in virtual currency mining activities.

It is worth noting that although these regulations come from documents of regulatory authorities, the principle of legality must still be strictly observed in criminal cases.

How to Respond to an Investigation

If unfortunate legal issues arise, encryption practitioners should pay attention to the following points:

1. Clarify your role: Understand whether you are being investigated as a witness or a suspect.
2. Pay attention to the investigation location: Witnesses may have more options, while suspects usually need to cooperate with the investigation at designated locations.
3. Focus on the investigation time: there is a clear time limit for the suspects, while witnesses are relatively flexible.
4. Check investigation procedures: Ensure the legitimacy of investigators' identities, various certificates, and documents.

Conclusion

The operating environment of the domestic encryption industry remains severe. Practitioners should be cautious when disseminating information and it is best to publish only after verification. In case of legal issues, it is advisable to consult a professional Web3 lawyer in a timely manner to obtain appropriate legal guidance and protection.