As a veteran of the currency circle for 7 years, I have not been blocked once in the past 3 years, so I have a relatively strong say in this issue.
I will take the most common question asked by retail currency friends in the group, deposit and withdrawal transactions in exchanges as an example, and discuss how to avoid card freezes in OTC transactions.
(1) For OTC transactions, try to choose large platforms such as Binance and Oyi. These platforms have better communication channels and risk control methods with mainland regulatory agencies and law enforcement agencies.
(2) Try to choose an OTC platform that supports T+1/T+2 withdrawal strategy. Although you cannot withdraw money immediately after selling the coins, it reduces the risk of money laundering through OTC transactions. For example, Binance T+1 and Huobi Select Trading (compared to free trading, T+2 withdrawal).
(3) Avoid directly using stable currency OTC transactions such as USDT. Try to use mainstream currencies such as BTC and ETH for OTC transactions.
(4) The bank card used for OTC transactions must be a separate card that is not used normally and separated from the salary card. In this way, even if it is frozen, it will not affect the use of other funds. When cooperating with the investigation, it is easy to clarify the flow of funds.
(5) Bank cards for OTC transactions should try to use cards from local banks, such as city commercial banks and rural commercial banks in various places. Large and medium-sized joint-stock and commercial banks such as Industrial and Peasant China Construction Bank have branches all over the country, so law enforcement agencies can basically freeze them directly.
(6) Do not conduct frequent transactions with fixed merchants, and do not conduct frequent transactions with fixed users. It is very dangerous for the same user to make more than 3 indirect purchases in a day, or to sell again a few hours later, and is highly suspected of money laundering.
(7) Find reliable OTC merchants for transactions. Try to take the initiative to take orders from large merchants and market makers, place fewer orders, and touch less merchants in problem areas. In fact, as an ordinary user, it is difficult to tell which merchants are reliable. For example, a large number of friends who transacted with Huobi Blue Shield service merchants have also had their cards frozen.
(8) Reduce the frequency of cash withdrawals and increase the amount of cash.
(9) After OTC transactions, do not transfer it to your other bank cards to avoid contaminating other funds and making it troublesome to cooperate with the investigation. If you need money urgently, you can withdraw cash through ATM or spend it online.
(10) Try to choose working days for cash out. It is best to trade during normal working hours such as working days, such as cashing out between 9 a.m. and 9 p.m.
(11) Do not transfer money immediately after receiving it. After selling USDT and converting it into RMB, do not transfer it out immediately, keep it in the account for a period of time.
How should we explain when our card is frozen so that we can prove that we are not involved in money laundering activities?
(1) The individual is a normal Bitcoin buying and selling transaction and does not involve money laundering or other transactions;
(2) He did not know that the debt received from selling coins was suspected of being a crime;
(3) Cooperate to provide all transaction records, chat records, on-chain transfer records, etc.;
(4) You must be very clear that personal transactions in digital assets do not violate the law.
In OTC transactions, the withdrawal bank card is frozen by the public security and judicial authorities. What materials will the other party require the individual to provide in order to lift the freeze?
Common information to be provided mainly includes: complete transaction records, such as bank card transactions, on-chain transaction records, order records on the trading platform, WeChat chat records (including content communicating the transaction process), and other evidence that can prove the legitimacy of the assets. , even proof of income, etc.
If your withdrawal amount is relatively large (more than 10 million), it may not be suitable for OTC trading mode. You can look for a more reliable method, which is the advanced anti-freeze strategy.
Sanma Ge’s personal background: 6 years in the banking industry, 7 years in the currency circle, veteran with practical experience. Welcome everyone to leave a message, follow, like, forward and communicate. Let’s move forward together on the road to success and wealth.