Is it illegal to exchange USDT for RMB?

As we all know, USDT is the most famous stable currency in the current digital currency market. As the leader of the stable currency sector, USDT plays a pivotal role in the currency circle, and its role on the world financial stage is also very rich. It can be used not only for digital payments, but also for cross-border remittances and currency exchanges. Many investors like to use USDT for transfers, because USDT can meet users’ needs for efficient transfer of users, and it is also very convenient, and it can also save users a lot of fees. However, are there many investors who are worried that it is illegal to convert USDT to RMB? Let me tell you about it below.

Is it illegal to exchange USDT for RMB?

According to the “About Preventing Bitcoin Risks” issued by the People’s Bank of China and other ministries “Notice”: “Although Bitcoin is called “currency”, it is not a real currency because it is not issued by the monetary authorities and has no legal and mandatory monetary attributes. It should be a specific virtual commodity, which does not have the same legal status as currency, and cannot and should not be used as currency in the market.”

my country’s determination of the nature of virtual currencies such as Bitcoin and USDT , is clarified through the departmental normative documents issued by the People’s Bank of China, the Ministry of Industry and Information Technology and other ministries and commissions, that is, denying the legal currency attributes of virtual currency, prohibiting its use in the market as currency, and defining it as a “virtual commodity”.

To make this clear, let’s look at payment settlement. Payment settlement is essentially the payment and settlement of “funds”. The purpose of payment and settlement is to realize the transfer of funds from one party to another through a third party, or to realize the conversion of funds from the state of documents such as bills and letters of credit to cash.

We do not act as a third party to transfer funds during the exchange process, and are not an intermediary for the flow of funds. Since my country does not recognize the legal currency attributes of virtual currency, but only recognizes it as a “virtual commodity”, then the customer and Chen are not a currency exchange, but a transaction relationship of purchasing virtual commodities in RMB, so this does not Not illegal.

USDT conversion fee for RMB

We usually make money by speculating in coins and want to withdraw USDT, or want to withdraw USDT from one trading platform to another, you will find the USDT withdrawal procedures The fee is very expensive, usually 5 USDT, and the cheaper one is 3 USDT, such as the GATE that I usually use. According to 1 knife = 7 RMB, 5 U is 35 yuan! It’s not easy to make some money by speculating in coins. This time, there is no more than 35 yuan, which is enough to eat a good lunch. I feel distressed. Is there any way to reduce the withdrawal fee? In fact, it has long been available, and even the handling fee has been waived for a long time. Now I will tell you how to do it.

As we all know, there are three types of USDT, one is based on the Omni chain, one is based on the Ethereum ETH ERC20 chain, and the other is based on the TRON TRC20 chain, which is currently larger. All exchanges already support the withdrawal and recharge of USDT in these three formats. The method is here. The withdrawal fee for USDT in these three formats is different. The traditional USDT-Omni is the most expensive, generally 5U. USDT-ERC20 is much cheaper as long as 1U, and using USDT-TRC20 is now free!

The above content is a specific elaboration on the issue of whether it is illegal to exchange USDT for RMB. In fact, when transferring between different exchanges, our USDT in different formats only means that its transfer path is different, and its result is the same. In addition, we must choose the same format of USDT for transfer transactions. If the format is different, the transfer may fail. When we withdraw cash, we must fill in the corresponding recharge address, and must not be confused. Once recharged If it is wrong, it will be very troublesome later, so everyone must double-check and confirm when withdrawing.

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