Recently, my private messages have been flooded with the same kind of questions:

Is it okay to be a USDT trader? Will there be issues with fund inflows and outflows? Is the regulation not as strict anymore?

Let me get straight to the point—don’t have unrealistic expectations; you still need to be cautious.

**To be clear: This business is a gray area in China**

Whether you’re exchanging coins for yourself, helping friends operate accounts, or just making introductions, all of these activities are restricted under current regulations. Buying and selling digital currency? That’s considered illegal financial activity. Helping others exchange USDT for a fee? Same situation. Think you’re safe just being a middleman? Think again.

Simply put: Getting involved in this business is like walking a tightrope.

**The real trouble isn’t the crypto, it’s your bank account**

These days, banks’ risk control systems are extremely sensitive. As soon as there are any funds in your account linked to digital assets, the system can instantly detect it:

- Your card might suddenly get limited or even directly frozen
- You might get a call from customer service asking you to explain the source and purpose of the funds
- If it involves overseas transfers, you could be treated as conducting illegal business

Think you’re operating seamlessly? Bank AI can flag you as a suspicious transaction target in seconds.

**Don’t misinterpret the new regulations—they’re not a sign of loosening**

There are two new regulations set to take effect on January 1, 2026, and many people mistakenly think this means policies are relaxing. That’s not the case at all.

First change: The mandatory registration requirement for cash transactions over 50,000 yuan has been removed. But that doesn’t mean you can withdraw freely—banks will still judge whether your transactions are abnormal based on your usual activity. If it needs to be reviewed, it will be.

Second change: Cross-border remittances over $1,000 now require identity verification. This is an international anti-money laundering standard and has nothing to do with your annual $50,000 foreign exchange quota.

Understand? The process is streamlined, but the precision of supervision is even higher.

**Finally, let’s be practical**

Being a USDT trader is risky—plain and simple. Fund movements can trigger risk control mechanisms at any time. Policies haven’t relaxed; regulation is just becoming more sophisticated.

There’s a golden rule in this market: It’s okay to earn slowly, but never let your principal get into trouble.

Protecting your principal is the biggest profit of all.