New Web3 regulations, effective July 28, 2025, redefine standards for identifying and sentencing information network crimes, impacting Web3 practitioners significantly. The guidelines aim to enhance judicial practices and provide clearer guidance for cases involving virtual currencies. A recent case saw defendants Wang, Zhang, and Zhao convicted for transferring illicit funds using virtual currencies, resulting in prison sentences and fines. The regulations underscore the necessity for compliance among Web3 professionals, emphasizing the importance of understanding legal frameworks and implementing robust risk management strategies. Ignorance is no longer a defense, and those providing technical support for illegal activities may face severe penalties. The legal community views these changes as a move towards stricter regulation of the virtual currency sector.