Crypto trading may seem simple, but the ways to cross the red line are diverse. Today, let's focus on a common pitfall — using virtual currency as an intermediary to buy and sell foreign exchange indirectly. This operation could quickly constitute illegal business, so don't think it's just a civil dispute.

**Typical schemes look like this**

Some trading counterparts or platforms use virtual currencies (especially USDT) as a medium, effectively helping people convert fiat currency to foreign currency and vice versa. For example, if you want to exchange USD, they collect RMB from you, give you USDT, and then help you cash out into USD — it looks like a crypto transaction, but in reality, it's foreign exchange trading. This crosses into illegal business territory. Court cases usually classify such cases as illegal foreign exchange business, and in severe cases, they can lead to criminal charges.

**Why is this so serious?**

Foreign exchange trading is strictly regulated domestically. If you bypass official channels and use virtual currency as a "cover" to manipulate foreign exchange, regulators will see this as illegal business. Participants and organizers could be held accountable — from civil penalties to criminal charges. Many cases start with "I was just helping a friend exchange some money," but eventually, the entire chain gets uncovered.

**Key points for USDT deposits and withdrawals**

Since we're talking about virtual currency trading, USDT deposits and withdrawals are high-frequency operations. Here are some strict rules:

1. **Use legitimate channels** — trade through licensed exchanges or compliant platforms. Avoid "black market brokers" or proxies in your social circle. If these unregulated channels get into trouble, you could be both a victim and a participant.

2. **Real-name accounts** — your bank card and payment accounts must be in your real name. Borrowing someone else's account for deposits and withdrawals may seem convenient but is easily recognized as "money laundering" or "unknown source of funds," with serious consequences.

3. **Keep records** — save transaction screenshots and transfer receipts. In case of disputes or inquiries, these are your "witnesses."

4. **Amount and frequency** — large or frequent deposits and withdrawals can trigger risk control mechanisms. Financial institutions report suspicious transactions, and if patterns show you're involved in foreign exchange manipulation, it’s no longer "suspicious" but "obvious."

5. **Counterparty background** — avoid large transactions with strangers. Verify whether the counterparty has real identity information and risk records; these details should be clarified before trading.

**Summary**

Virtual currency trading itself is not problematic, but if it becomes a tool for foreign exchange trading, you cross the legal red line. To play safely with crypto and handle deposits and withdrawals, the core is: choose legitimate platforms, follow legal channels, use real-name accounts, and keep good records. Don't chase small gains or convenience, as it may lead to legal risks. The crypto world is deep; compliance comes first.