China's Supreme Court ruled Thursday that virtual asset transactions constitute "illegal fundraising," paving the way for judicial prosecution of the crypto industry.

While the People's Bank of China and a host of other top-level agencies had declared that crypto transactions are illegal fundraising back in September 2021, the court ruling formally designates them as a crime and determines related punishments.Thursday's ruling said that suspects will be prosecuted according to Article 176 of China's criminal law, which stipulates prison sentences between three and ten years and fines between RMB 50,000 ($7,900) and RMB 500,000 ($79,000) for crimes involving large sums of money. Less serious crimes will be prosecuted with under three years of prison and RMB 20,000 ($3,160) to RMB 200,000 ($31,600) in fines, according to the criminal law.The amendment comes into effect on March 1.Chinese provincial authorities continue to crack down on the industry. The eastern province of Zhejiang announced increased electricity tariffs on Wednesday for crypto mining, joining Hainan and Inner Mongolia.

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