On September 28, 2024, the 5th Terra Nova Criminal Defense Forum was held in Beijing and Shenzhen. The forum was guided by Beijing Lawyers Law Research Association and Digital Terra Nova, organized by Terra Nova International, co-organized by Shenzhen Lawyers Association Criminal-Civil Cross-Legal Professional Committee, and co-organized by Beijing Terra Nova Law Firm. Lawyer Yali Liang, senior partner of King&Capital Law Firm and director of Kyoto Criminal Defense Research Center, was invited to participate in the meeting and share her speech.
Director Zhou Lei
Focusing on the core topic of “Prevention, Control and Resolution of Financial Criminal Risks”, nearly 40 criminal defense experts and renowned lawyers discussed the identification of financial criminal risks, in-depth interpretation of laws and policies, effective risk prevention and control strategies, and coping mechanisms for criminal crises through a combination of online and offline methods. The forum aims to promote criminal risk management in the financial field, enhance the professional level of the legal service industry, and ensure that the interests of enterprises and investors are fully protected. The forum was hosted by Zhou Lei, Director of Criminal Practice Center of Beijing Yinghe Law Firm (National), as the chief moderator.
Speech by Mr. Sun Zaichen, Executive Vice President of Beijing Lawyers Legal Research Association
Sun Zaichen, Executive Vice President of Beijing Lawyers Law Society, Founder of Digital Terra Nova, Founder of Terra Nova International, and Director of Beijing Terra Nova Law Firm, said in his opening speech that the recent interest rate cuts by the Federal Reserve and a series of financial policies introduced by China are profoundly reshaping the pattern of the global market. These changes not only open up a broad space for the development of financial industry practitioners, but also bring unprecedented challenges and opportunities to many related fields, including the legal profession. Against this background, the organization of this forum is particularly crucial. It not only builds a platform for in-depth discussion of financial criminal risk prevention and resolution strategies, but also provides us with valuable communication opportunities.
Mr. Liang Yali delivered a keynote speech
Mr. Liang Yali, Executive Director of China Criminal Law Association, Senior Partner of King&Capital Law Firm and Director of King&Capital Criminal Defense Research Center, participated in the Beijing Forum and delivered a keynote speech on the topic of “Financial Criminal Risks and Regulatory Suggestions of Internet Integral Transactions”.
In her speech, Ms. Liang discussed the types and criminal risks of the green consumption point mode of a large number of e-commerce platforms in recent years. She pointed out that under the support and encouragement of the national green consumption, consumption rebate, digital empowerment and other favorable policies, e-commerce platforms and other market players actively explore and boldly innovate the green consumption points, which in turn presents an emerging consumer trend. However, it is also found that many platforms play “promote consumption”, “help agriculture”, “help small and micro enterprises” and other slogans, while the actual consumption points rules are different.
On this basis, Liang Yali summarized the common green consumption points mode on the current e-commerce platform into three types: the first type is the “single points mode” that takes incentive consumption as the core objective, which does not have value-added effect and investment significance; the second type is based on consumption points, which has investment value-added effect but can be used for investment value-added effect, through transforming the points system into equity, dividends, and so on, but can be used for investment value-added effect. The second type is the “controllable dual-system integral mode” based on consumption points, through transforming the integral system into equity, dividends, etc. with investment value-added effect, but can set the income ceiling and mandatory withdrawal mechanism; the third type is the “uncontrollable dual-system integral mode” based on consumption points, directly transforming the points proportionally and not setting the mandatory withdrawal mechanism. The third type is the “uncontrollable dual-system points model”, which directly converts points proportionally on the basis of consumption points and does not set a mandatory withdrawal mechanism.
Combining her many years of experience in handling commercial criminal cases and corporate compliance governance, Ms. Liang Yali analyzed and elaborated on the criminal risks of these three models in detail. The first “single points model” is a typical compliance operation at present, and the legal risk is relatively small, but with the expansion of the scope of points exchange, the resulting “Matthew effect” may further trigger the risk of monopoly or unfair competition. The second “controllable dual-system integral mode”, especially with the help of blockchain technology, may have the attribute of “virtual currency”, which may lead to the criminal risk of commercial bribery and engaging in capital payment and settlement business without license. In addition, if merchants enter the platform to fictionalize consumption projects, just to cash in points, it may also lead to the risk of illegal fund-raising. The third “uncontrollable dual-system points model”, the most significant criminal risk lies in the crime of pyramid selling. Under the interaction of green consumption and points trading, it is easy to be suspected of illegal pyramid scheme by taking consumption points as the main measurement standard of the hierarchy, encouraging OTC transactions between users, developing downlines and calculating consumption points according to the head of downlines.
Finally, Liang Yali lawyer reminded that the e-commerce platform of green consumption points mode, its original intention is to promote consumption, once the platform set the green consumption points mode, there is a trend away from the promotion of physical consumption and derivatives of financial investment and financial bubbles, it is very easy to fall into illegal business and illegal profit-making means of operation. E-commerce platforms should comply with the law when launching the green consumption points model to prevent legal risks, especially criminal risks.
Ms. Liang Yali attending the meeting
Group photo of some participants at the Beijing venue
In this forum, nearly 40 criminal defense experts and lawyers gave speeches around the central theme and shared a lot of cutting-edge insights and practical experience. The success of this forum has demonstrated the vitality and professionalism in the field of criminal defense, which is not only a platform for legal experts and lawyers to exchange ideas and share experiences, but also a bridge to promote the combination of legal practice and theoretical research. The organizer said that more professional forums will be held in the future to meet the demand of the legal profession and the public for high-quality legal services, as well as to provide legal professionals with opportunities for continuous learning and growth.
