Legal Risk Reminder for U Card Promotion

In recent years, U Card has gained popularity as an emerging payment method within the cryptocurrency space. It offers users a convenient option to spend without the need for traditional withdrawals. However, when promoting U Card, especially to users in mainland China, there are significant legal risks that cannot be ignored.

Introduction to U Card

The U Card is essentially a USDT bank card. Its core principle is to utilize the price stability of stablecoins like USDT to provide users with a stable and convenient payment tool. Users only need to recharge USDT into the card to make purchases in various offline physical scenarios. Due to the relatively small value fluctuations of stablecoins like USDT, it is more practical for daily payments.

Potential Risks of Promoting U Cards

1. Policy Compliance Risk: According to the current policies and judicial precedents in mainland China, authorities hold a negative attitude towards the exchange of cryptocurrency with fiat currency. The use of U cards is likely to touch upon the forbidden areas of the foreign exchange management system. If promoters are found to be knowledgeable, complicit, or indirectly supporting illegal foreign exchange trading, they may face legal repercussions.

2. Issuer's review responsibilities: As a U Card promoter, it is your responsibility to conduct due diligence on the issuing institutions. Currently, the issuers of U Cards mainly include direct issuance by banks, collaboration between banks and cryptocurrency companies, independent issuance by specialized encrypted payment companies, and issuance through SaaS model partnerships. Promoters should prioritize well-known, licensed service providers to ensure the safety of funds and compliance of transactions.

3. Personal Information Protection Risks: When handling card opening services for users, promoters inevitably come into contact with a large amount of personal information. In the event of a data breach, they may face serious legal consequences.

4. Associated Criminal Risks: If a promoter assists users in providing false identity information to open accounts, or opens accounts in bulk for a single user, they may be regarded as knowingly providing assistance with criminal intent, thereby involving themselves in crimes such as money laundering and illegal foreign exchange trading.

Conclusion

Although U-card and other stablecoin bank cards represent an innovative payment method, there are significant policy risks associated with promoting U-cards, especially for users in mainland China, given the current regulatory environment. Even if relevant regulations may be relaxed in the future, U-card promoters should act cautiously to avoid assuming the review obligations that should be the responsibility of the issuer, in order to mitigate potential legal risks.