Using a U-Card for consumption within the country is illegal and carries significant legal risks, which can be categorized into two types: administrative risks and criminal risks.

1. Administrative violation risk: The U-Card relies heavily on USDT (virtual currency) top-ups. The consumption process essentially involves converting virtual currency into fiat currency through overseas mechanisms, bypassing the official foreign exchange trading venues and regulatory procedures in China, which constitutes a "disguised foreign exchange transaction." According to the "Regulations on Foreign Exchange Administration," such behavior is considered a violation of foreign exchange regulations, and users may face warnings and fines of 10%-30% of the transaction amount.

2. Criminal risk: If the funds used to purchase USDT are proceeds from crimes such as fraud or gambling, or if the U-Card is used to help transfer or cash out such illicit funds, users may be charged with crimes such as money laundering or concealing and disguising criminal proceeds. In addition, if a user frequently exchanges USDT and RMB through the U-Card to earn a price difference, this may be considered illegal business operations.