Today I saw many friends discussing the U Card, especially mentioning that using the U Card may involve legal risks in China. In fact, this is almost nonexistent because the U Card is essentially a foreign exchange card that is priced in foreign currency when used. This means that when you use the U Card, the logic is not about using cryptocurrencies like USDT or USDC, but rather using foreign currencies, such as USD, for settlement.

The merchants actually receive their local currency, and the settlement with U is pre-processed just like foreign exchange. Generally, when you top up your U Card, the stablecoins or other cryptocurrencies have already been converted into fiat currency before the settlement occurs.

Therefore, merchants will not know that you are settling with cryptocurrencies; at most, they will know that you are using an overseas "card" or settling in foreign currency. The biggest pitfall lies here: if you use the U Card to purchase goods worth over $50,000, such as luxury cars, it is not the U Card that triggers risk control, but rather the excessive use of USD, which may involve disguised currency exchange or exceeding foreign exchange limits.

This is fundamentally unrelated to the U Card.

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