People in the cryptocurrency circle suddenly face "border control"? Detailed explanation of the reasons, inquiry methods, and handling

Author: Xiao Za Lawyer

Recently, a member of Sister Za's team received a late-night consultation call from an old friend in the cryptocurrency circle. This old friend expressed that he was suddenly "border controlled" and unable to leave the country. He was very worried that he would be taken away by judicial authorities and restricted in personal freedom due to some gray areas in his business operations. Therefore, he urgently needed legal services.

In fact, the situation of this old friend is not an isolated case. In many cases we handle, "border control" is not a new phenomenon, and it is not uncommon for people in the cryptocurrency circle to suddenly be "border controlled." Today, Sister Za's team will explain in detail what "border control" is, why people in the cryptocurrency circle are subjected to "border control," and how to self-rescue if one is "border controlled."

What is "Border Control"?

"Border control" refers to the implementation of exit and entry control on specific individuals by the national immigration management authorities based on decisions made by relevant authorities. The specific types of "border control" include two categories: prohibition of exit and prohibition of entry. The legal term is "exit restriction."

The term "border control" has a long history. It was not originally a colloquial abbreviation but was actually used in normative documents in our country. It first appeared in the 1990 notice jointly issued by the Ministry of Public Security, the Supreme People's Court, and the Supreme People's Procuratorate regarding the implementation of the new "Notice of Border Control Objects." By 1998, the Ministry of Public Security clarified the concept and implementation methods of "border control measures" in Article 256 of the "Procedures for Handling Criminal Cases by Public Security Organs."

To this day, "border control," as a common temporary regulatory measure, does not have a dedicated law, administrative regulation, or other normative documents specifically governing it, but is scattered across many existing laws, regulations, judicial interpretations, and normative documents in our country.

For example, at the legal level, the main laws include: (1) "Exit and Entry Administration Law"; (2) "Tax Collection Administration Law"; (3) "Civil Procedure Law"; (4) "Criminal Procedure Law"; (5) "Supervision Law," etc.

In terms of administrative regulations and departmental rules, the main ones include: (1) "Interim Measures for the Management of Chinese Citizens Traveling to Hong Kong or Macao for Personal Matters"; (2) "Measures for the Management of Chinese Citizens Traveling to Taiwan"; (3) "Implementation Rules for the Tax Administration Law"; (4) "Regulations on the Handling of Traffic Accidents"; (5) "Procedures for Handling Criminal Cases by Public Security Organs," etc.

There are even more judicial interpretations and normative documents. Interested parties can look them up themselves; Sister Za's team will not list them all.

Why Are People in the Cryptocurrency Circle Suddenly Subject to Border Control?

As mentioned earlier, it is actually not uncommon for people in the cryptocurrency circle to suddenly be subjected to border control. According to Article 12 of the "Exit and Entry Administration Law," Chinese citizens are prohibited from exiting the country under the following circumstances:

1. Not holding valid exit and entry documents or refusing to undergo border inspection;
2. Having been sentenced to punishment that has not yet been fully executed or being a defendant or suspect in a criminal case;
3. Having unresolved civil cases, with a decision from the people's court prohibiting exit;
4. Having been criminally punished for obstructing national (border) management or being repatriated by other countries or regions for illegal exit, illegal residence, or illegal employment, and not yet meeting the exit prohibition period;
5. Being deemed a potential threat to national security and interests, with a decision from the relevant department of the State Council prohibiting exit;
6. Other circumstances as stipulated by laws and administrative regulations that prohibit exit.

Based on Sister Za's team's practical experience, the vast majority of cases where individuals in the cryptocurrency circle are suddenly "border controlled" can be attributed to the following four reasons:

1. They have already been identified as important criminal suspects (or closely related persons) in a criminal case, and the investigation agency has initiated a criminal case, which is currently being processed;
2. They have been placed on the exit restriction list by the enforcement court due to civil disputes with others;
3. They are involved in the handling of special cases, such as those being investigated by special departments like the Supervisory Commission;
4. They have been included in the "sensitive personnel" list.

Therefore, if individuals in the cryptocurrency circle suddenly find themselves "border controlled," they must be vigilant and immediately consult a lawyer or other professionals to begin risk assessment. Of course, there is no need to fall into a state of extreme anxiety and panic. We have found that many times, individuals in the cryptocurrency circle may have certain operations or industries abroad that require frequent entry and exit, or there may be non-compliant or gray operations in some of their overseas industries (for example, some operations that are legal and compliant in the destination country may be illegal or even criminal in our country). This could attract the attention of regulatory agencies, leading to their inclusion in the "sensitive personnel" list and subsequent restrictions during the exit process.

Therefore, being "border controlled" does not necessarily mean that one has been criminally charged. Of course, due to our country's relatively negative attitude towards crypto assets and related trading behaviors, and in the current economic environment, there may be a tendency for some judicial authorities to engage in opportunistic law enforcement. The "Sword of Damocles" still hangs over individuals in the cryptocurrency circle, and if they are "border controlled," they should not take it lightly.

It is important to note that once it is confirmed that one is "border controlled" due to involvement in a criminal case, individuals in the cryptocurrency circle must prepare as soon as possible. In our country, "border control" measures cannot be used arbitrarily and are generally only applied to important cases. According to Article 278 of the "Interpretation and Practical Guide for the Procedures for Handling Criminal Cases by Public Security Organs (2021 Edition)"【Approval and Control Procedures for Border Control】: If border control measures need to be taken against a criminal suspect at the port, a notice of border control must be prepared according to relevant regulations, along with relevant legal documents, and submitted for review by the head of the public security organ at or above the county level, and then reported to the provincial public security organ for approval, to implement nationwide border control measures… In emergency situations, public security organs at or above the county level can issue a formal letter to the relevant border inspection agency at the port to implement control, but they must process nationwide border control measures within seven days according to the prescribed procedures.

How to Check if You Are "Border Controlled"?

In practice, individuals can check through various channels to see if they are "border controlled."

Possible Civil Dispute Situations

Individuals can check the China Execution Information Public Network (http://zxgk.court.gov.cn/) by entering their name and ID number in the comprehensive inquiry interface for executed persons (if it is a company where they are the legal representative involved in a dispute, they can enter the company name and organization code for inquiry) to see if any related restrictions have been imposed. Additionally, they can communicate with the enforcement judge through a professional lawyer to directly inquire if they have been subjected to exit restrictions due to failure to comply with an effective judgment.

No Civil Dispute and No Criminal Offense, Uncertain About Involvement

(1) They can check through the National Immigration Administration's Government Service Platform. On this platform, individuals can check their document information. If their relevant documents show any abnormal situation, it may indicate that they could be "border controlled." However, this method is not necessarily accurate; in practice, many individuals have had normal document displays but encountered difficulties during actual exit.

(2) They can go to the entry and exit department for on-site inquiries. Generally, staff will inform them whether they are restricted from exiting.

(3) Additionally, they can directly purchase exit tickets to see if they can pass through customs. If they are "border controlled," they will not be able to exit. Some clients of Sister Za's team who were "border controlled" have experienced being informed by relevant staff that they could not exit as soon as they entered the airport.

What to Do If You Are "Border Controlled"?

The approach to handling this situation varies. If the restriction is due to a civil dispute, as long as it does not involve the crime of refusing to comply with an effective judgment or ruling, there is no criminal risk, and one can entrust a lawyer to handle it. However, the debt that needs to be fulfilled must ultimately be fulfilled.

If it involves a criminal case or a special case handled by the Supervisory Commission or other agencies, one must begin preparations as soon as possible, including pre-entrusting a criminal defense lawyer to communicate with judicial authorities and making arrangements for family members' living situations.

If one is included in the "sensitive personnel" list by regulatory agencies for special reasons, the situation is more complex. First, we need to determine which judicial or administrative regulatory agency has included us in the "sensitive personnel" list (generally the public security agency); secondly, we need to communicate fully with that agency and provide a series of materials to "prove our innocence," generally including personal household registration information, bank statements, entry and exit records, proof of overseas work and business operations, self-statements, etc., depending on the requirements of the regulatory agency.

Final Thoughts

In summary, following the recent issuance of the "Interpretation on Several Issues Concerning the Application of Law in Handling Money Laundering Criminal Cases" by the two high courts, which included virtual asset transactions as a means of money laundering, our country has begun to strictly investigate related transactions involving crypto assets. Cases involving dirty money and stolen funds are frequent, and individuals in the cryptocurrency circle must exercise extreme caution regarding their trading behaviors and avoid crossing the line. Once they discover they are "border controlled," they must quickly conduct a risk assessment and, if necessary, promptly entrust a professional lawyer to handle the situation.

That concludes today's sharing. Thank you to the readers!