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

**Here's what the common scheme looks like**

Some trading counterparts or platforms use virtual currencies (especially USDT) as a medium, effectively helping people convert between fiat currency and foreign currency. For example, if you want to exchange USD, they collect RMB from you, give you USDT, and then help you cash out into USD—appearing as a currency exchange, but in reality, it's foreign exchange trading. This crosses into illegal business territory. Court cases typically classify such cases as illegal foreign exchange operations, 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 activity. Participants and organizers could be held accountable—ranging from civil penalties to criminal charges. Many cases start with "I was just helping a friend exchange some money," but end with authorities uncovering the entire chain.

**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 friends' proxies. If these unregulated channels get into trouble, you could be both a victim and a participant.

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

3. **Keep records**—Save transaction screenshots and transfer receipts. These will serve as your "evidence" in case of disputes or inquiries.

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 a real identity and no risk records; these details should be checked before trading.

**Summary**

Virtual currency trading itself isn't problematic, but if it becomes a tool for foreign exchange trading, you've crossed the legal red line. To safely participate in crypto and deposits/withdrawals, the key is: choose legitimate platforms, follow legal channels, use real-name accounts, and keep thorough records. Don't chase small gains or convenience at the expense of legal compliance, or you'll risk falling into legal trouble. The crypto world is complex—compliance comes first.