In the current crypto bull market, many are already seeking safe withdrawal channels. To avoid minor issues like card freezing or more serious problems like being taken for an interview by authorities, let’s discuss the legal risks and feasibility of existing withdrawal channels today, helping everyone manage crypto assets in compliance.
I. Major platforms like An and K withdraw through OTC methods
This withdrawal method is currently chosen by many partners mainly because of its low cost and ease of self-operation. However, it is important to note that this method has gradually become one of the easiest channels to receive dirty money. Not only is there a possibility that your bank card may be frozen, but the money in your account may also become unusable and could even be confiscated by judicial authorities with corresponding fines. If you choose to withdraw through OTC channels, it is recommended to review the transaction records and security risks of the merchants carefully, selecting those with higher security ratings for withdrawal, and avoiding merchants with low credibility and poor transaction records or success rates. Don't make a mistake for the sake of saving a few cents on exchange rates; safety comes first!
II. Currency Exchange Withdrawal
The risks of currency exchange withdrawal are rarely heard of. Most currency exchange withdrawals are similar to the OTC withdrawal methods of exchanges. It is also possible to receive money with unknown origins, leading to card freezing or being treated as a suspect in extreme investigation cases.
For example: Be cautious of those who mention withdrawals or receiving U in their social circles. Don't be greedy for small gains and get carried away!
III. About U Card Withdrawal
Currently, many U cards can be linked to apps like a certain messaging app or payment app for consumption payments, but they incur a certain handling fee, approximately 2% of each transaction, which meets daily living needs. At the same time, it is important to be aware of the risks associated with U cards. Currently, MasterCard and Visa cards are the most common, and the sources of funds are relatively safe, but there are too many card agents, so one needs to choose reliable ones to process the application. It is worth noting that too much money should not be stored on the card; otherwise, if service stops, funds cannot be transferred out in time, which can lead to financial losses.
The security factor of U cards is relatively high, but there is a fear of sudden service cessation, so small amounts should be used for consumption.
IV. Offline Withdrawals in Hong Kong
Generally, physical presence is required to exit the country and open a bank account. For withdrawals in Hong Kong, there are mainly two scenarios: one is at an ATM, and the other is exchanging at offline stores. The daily transaction amount at stores needs to be below 120,000 HKD, and there is no customer registration; you can come and go freely. However, if it exceeds 120,000 HKD, a simple KYC registration is required, and a handling fee of around 4% is charged. As long as our U is clean and used for necessary living expenses, the cost is low and convenient, but there is still a chance of receiving dirty money, although the probability is low. It is recommended to exchange at stores with long-term operations, such as Mong Kok or Tsim Sha Tsui.
V. Withdrawal through licensed crypto exchanges and brokers in Hong Kong
Currently, the list of licensed trading entities for crypto assets announced by the Hong Kong Securities and Futures Commission has reached seven, reflecting Hong Kong's urgency in striving to become the Asian crypto financial center. From the current withdrawal channels, physical withdrawal methods are the most legal and compliant with low risk, but currently, USDT and other crypto assets cannot be directly traded on licensed exchanges and need to be assisted by spot channels of BTC and Ethereum.
Using the spot channels of BTC and Ethereum in Hong Kong helps convert U into BTC or other fiat currencies with a short cycle, minimal financial risk. Once the conversion is completed, the funds will be credited to a Hong Kong bank account, which is compliant and safe with low chances of dirty money and minimal card freezing incidents.
However, currently, domestic identities cannot directly open accounts and require the help of reliable friends abroad, necessitating physical presence in Hong Kong to open a personal bank account, which is relatively troublesome and inconvenient for small individual investors.
VI. Summary
At present, there is no so-called 100% safe and zero legal risk withdrawal plan, but the risk factor can only be reduced. Friends need to think carefully before making a decision.