Ministry of Justice: Compliance of encryption platform after the fact is insufficient for probation or may exacerbate illegal behavior

Recently, a prosecutor from the Department of Justice expressed views on a case involving a certain Crypto Assets trading platform. He believes that although the platform and its responsible parties did take some Compliance measures after being investigated, this is not sufficient to be a reason for probation. The prosecutor emphasized that while such post-incident Compliance behavior is commendable, it should not serve as the basis for a reduced penalty.

The prosecutor also specifically pointed out that they do not believe the platform's leader is comparable to the defendants in other well-known Crypto Assets cases, nor do they consider him to be a maverick. However, the prosecutor insists that imposing probation in such cases could embolden others to take risks and even encourage them to engage in illegal activities on a larger scale.

Previously, the presiding judge stated that he generally agreed with the probation office's recommendation to consider a sentence of 10 to 16 months of imprisonment, in addition to a supervised release period of 1 to 3 years. This preliminary opinion provides a reference framework for the final judgment of the case.

This case has sparked widespread discussion within the Crypto Assets industry regarding compliance issues. Industry insiders generally believe that while the compliance measures taken later are commendable, they should not serve as an excuse to evade responsibility. At the same time, this also highlights the challenges faced by the Crypto Assets industry in terms of compliance and the strict stance of regulatory authorities.