[In-depth Analysis] Guide to Cash Out and Cash U in Mainland China
Previously, I provided a buying guide for cryptocurrency friends, which has been read by over 100K people. In the buying guide, I mentioned the current chaotic situation of C2C, especially pointing out that most C2C merchants on the Binance platform do not operate according to the corresponding C2C rules, leading to attacks by a small number of merchants, which was expected. From the previously published articles, it also reflected the obstacles to purchasing and the difficulties in cashing out faced by cryptocurrency friends. Today, I will deeply analyze the issues of cashing out U and cash out in mainland China.
I. Legal Issues Faced
The People's Bank of China has explicitly prohibited token issuance financing (such as ICOs) and the operation of virtual currency exchanges since 2017 with the announcement on preventing the risks of token issuance financing. In 2021, the notice on further preventing and addressing the risks of virtual currency trading speculation further strengthened this regulation. It clearly states that overseas virtual currency exchanges providing services to residents in mainland China through the Internet are also considered illegal financial activities, and financial institutions and non-bank payment institutions may not provide services for virtual currency-related business activities. The notice emphasizes a strict crackdown on illegal operations, financial fraud, and other criminal activities related to virtual currency business activities.
