Frequent Freezing of Bank Cards in Digital Currency Transactions? What Kind of Crypto Exchange Should Be Chosen to Avoid Risk Control Issues


Hong Kong, China -- (ReleaseWire) -- 01/26/2021 --In the field of cryptocurrency, Over-The-Counter (OTC) undoubtedly occupies a very important position. Because the first step for users to enter the crypto market is to trade, that is, to buy mainstream digital currencies (such as BTC, ETH, USDT, etc.) by using legal currencies.

However, since the blockchain has always pursued the characteristics of globalization, decentralization, and permission-free since its birth, it has also become a "payment method" favored by gray activities such as smuggling, money laundering, and drug trafficking. Among them, due to the continuous flow of funds, the accounts of fiat currency trading users are easily cross-infected by black money without knowing it, so you need to be extra cautious.

In June this year, the frozen card incident quietly swept the cryptocurrency field. Several users of crypto assets have claimed that their bank cards have been frozen recently, including Sun, a well-known Bitcoin miner. Sun said that there are mainly the following types of funds flowing into bank cards that may lead to freezing of cards, and unfortunately, these are the main admission funds except for institutions. Therefore, the freezing of cards may become more and more serious in the future.

Virtual currency exchanges often use OTC over-the-counter transactions to exchange legal currency and virtual currency. Common over-the-counter payment channels generally include paypal and bank cards. Bank channels are basically not allowed to accept virtual currency or use virtual currency as a payment and settlement tool; it is not allowed to conduct exchange services between virtual currency and RMB and foreign currencies.

Some trading platforms will also kindly remind users that during the transfer process, do not use BTC and other vocabulary related to virtual currency to prevent bank cards from being frozen. Looking back at Wen Chu's remarks by a lawyer, the reason why such a big controversy is caused is not only that the statement is too biased, but also contrary to everyone's perception, because in reality, most individual users are still stably speculating coins. As a "new" thing, virtual currency is facing many new regulatory issues in our country. At present, the main crackdown is on illegal fund-raising activities carried out in this name, or related criminal activities. After all, these criminal activities have affected the normal financial order and the interests of ordinary people.

For daily transactions, after all, the daily transaction basis is too large, and it is impractical to completely prohibit it. But this is not directly related to the nature of the behavior. Ordinary buying and selling of virtual currency, not cheating or cheating, it is still difficult to be suspected of criminal offences. However, it is necessary to distinguish between legally holding virtual currency, illegally acquiring virtual currency, and criminally acquiring virtual currency.

We need to clarify one thing. The final inflow of stolen money into the exchange is not a problem of the exchange. It is difficult for the exchange to fully and effectively identify the legitimacy of the funds, and it is also one of the victims of the inflow of stolen money. For this reason, how to establish a mature wind control system to prevent the free flow of stolen money is particularly critical for the top exchanges. Here we take as an example.

The relevant person in charge of once said that the platform has built a list of black currency addresses, which is updated from time to time by special personnel. The system monitors that the black currency addresses are transferred to the platform and the account is immediately frozen. Advertisers in the legal currency trading zone can flexibly set the multi-dimensional conditions of the counterparty, such as trading T+1 days to withdraw coins, etc., to prevent black money and black money transfer. In addition, has set up a "National One-Key Report" button on its website and app, allowing users to report other customers quickly and conveniently they consider suspicious. Omar, CEO of, once gave a speech and mentioned the reasons for the steady development of transaction security settings have many strict risk control and security assistance functions. The core technology of wallet and custody service is also the core of 7 years. Our custody service also serves many leading exchanges. Before the end of 2017, almost none of the users did not make money. This is the consensus of many old coins. brought a lot of star coins in the early days: ETH, ETC, HSR, Qtum, EOS, etc., which caused a large number of retail investors to flood in. At its peak, accounted for more than 50% of global ETH transactions and more than 70% of ETC transactions.

The anti-money laundering and other compliance issues currently faced by digital currency exchanges are still severe, and there is still much room for improvement in dealing with the inflow of illicit money. It is hoped that exchanges can explore more efficient and transparent anti-money laundering solutions, and provide investors with a safer and more reliable trading environment.