Truth and Warning of the "Hangzhou Probe" Incident in the Encryption Industry

Recently, there has been new progress in the "Hangzhou investigation" incident circulating within the encryption industry. After multiple verifications, including confirming with relevant judicial authorities in Hangzhou and obtaining information from other channels, the claim that the Hangzhou police conducted a systematic investigation of encryption practitioners has been confirmed to be false information.

The Truth of the Incident Revealed

According to the investigation, the truth of the incident is likely related to a larger local encryption currency team in Hangzhou, involving foreign exchange-related crimes, and suspected of illegal operation. The information previously circulated online may have originated from involved parties or witnesses cooperating with the public security investigation. There are reports that certain encryption currency practitioners in Hangzhou have been missing for several days, and the team they belong to is not small.

Therefore, it can be inferred that the essence of the "Hangzhou investigation" incident is an investigation targeting specific involved teams, rather than a comprehensive inspection or crackdown on the entire encryption industry.

Warning to the encryption industry

This event has sounded the alarm for the encryption industry, with two main points to note:

1. Understand the regulatory red lines in the mainland.
2. Mastering the strategies to respond when being surveyed

regulatory red line

Currently, mainland encryption practitioners need to be cautious to avoid the following behaviors:

• Exchange virtual currency for fiat currency
• Carry out exchanges between virtual currencies
• Acting as a central counterparty for buying and selling virtual currency
• Provide information intermediary and pricing services for virtual currency trading
• Participate in token issuance financing and virtual currency derivatives trading
• Establish an exchange and provide services to residents in the mainland
• Provide various services for overseas virtual currency exchanges
• Register enterprises that contain terms such as "virtual currency", "encryption assets", etc.
• Engaged in virtual currency mining activities

It is worth noting that although these red lines are mentioned in regulatory documents, they do not explicitly stipulate specific legal consequences. In criminal cases, the principle of legality must still be strictly adhered to.

coping strategies during an investigation

If you unfortunately encounter criminal legal issues, you can refer to the following advice:

1. Clarify your own situation: Understand whether you are being investigated as a witness or a suspect.
2. Pay attention to the location of the investigation: witnesses are relatively flexible, while suspects must be at designated locations.
3. Pay attention to the time of cooperation with the investigation: the first investigation of the suspect generally does not exceed 12 hours, at most 24 hours.
4. Verification of Investigation Procedures: Ensure the legitimacy of the identity of investigators, relevant documents, and paperwork.

Conclusion

Current domestic encryption practitioners are facing a severe survival environment. It is essential to be cautious when disseminating information and it is best to verify before publishing. In case of legal issues, it is advisable to consult a professional blockchain lawyer in a timely manner. This incident once again reminds industry insiders that maintaining a balance between innovation and compliance is crucial.