China began blocking banking …


China’s Next Financial Crisis: Shadow Banking

China began blocking banking ...

China starts blocking bank accounts for OTC cryptocurrency transactions

  • Chinese authorities launched massive anti-money laundering operation, killing over 1,000 people.

  • Most users who have their bank accounts frozen have not been charged.

  • OTC trading in China is in great demand due to the regulator’s position on cryptocurrencies.

International consortium of news organizations developing transparency standards.

Cleaning up the cryptocurrency market in China is most likely related to the alleged money laundering.

China began blocking banking ...

The Chinese authorities have launched a large-scale campaign to regulate the circulation of cryptocurrency funds through bank accounts. The first to notice this was Invezz..

The owners of cryptocurrencies, as well as the manager of the Bixin cryptocurrency wallet, San Shiaoshiao, began to complain on the Chinese microblogging service Weibo that their bank accounts were frozen at the initiative of the police in the Chinese province of Guangdong.

It is assumed that users who conducted over-the-counter transactions (OTC) with cryptocurrencies were caught under the raid by the regulator.

It is reported that Chinese law enforcement agencies have tightened the circulation of cryptocurrencies as part of the fight against money laundering in China. At least over a thousand people were blocked.

No formal charges have been filed by Chinese law enforcement, as reported by users on Weibo.

Closing the liquidity gate

OTC transactions in China are in great demand due to the tough position of the regulator, which suppresses any unauthorized actions with cryptocurrencies.

In addition, this is the only way in the country to receive and withdraw cryptocurrency into local fiat currency..

China began blocking banking ...

What other methods of turnover of cryptocurrencies exist – you can find out on our official page on Telegram.

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A spokesman for another Chinese bitcoin wallet, Bitpie Wallet, said that if the information with the blocking of more than a thousand bank accounts is confirmed, the scale of the alleged Ponzi scheme or money laundering is really great..

“I think that after these regulations, OTC trade will decrease by half. Bitpie Wallet users have not yet complained about the blocking of their bank account, but the situation makes you nervous, “- wrote a representative of Bitpie Wallet on Weibo..

In the footsteps of an older brother

In the domestic market, there have been no cases of mass raid of bank accounts by the regulator, however, operations with cryptocurrency are still included in the list of suspicious transactions.

Earlier, the editorial staff of BeInCrypto already wrote that the Central Bank of Russia has prepared amendments to Regulation 375-P, aimed at regulating financial transactions.

The amendments state that banking transactions related to the purchase and sale of cryptocurrencies fall under the basis for blocking a bank account.

It should be noted, however, that regulatory uncertainty did not affect the activity of cryptocurrency turnover in the country. How exactly to benefit from cryptocurrency investments and what strategies exist – find out here.

However, the final point in the issue of cryptocurrency regulation in the Russian Federation will be put by the draft law “On digital financial assets”, work on which was started two years ago.

China began blocking banking ...

It is assumed that the State Duma will finally approve the bill by the end of 2020.

What do you think? How justified is the mass blocking of bank accounts in the fight against fraudulent activities? Share your thoughts with us in the comments and join the discussion in our Telegram channel.


All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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