Legal ways to cash out "U", what are the current methods?
Many friends have been asking me if there are legal channels for cashing out, today I will summarize for everyone:
1) Licensed cryptocurrency exchanges in Hong Kong + broker channels
Current situation of cashing out U: The number of licensed cryptocurrency exchanges officially announced by the Hong Kong Securities and Futures Commission has reached 7, such as OSL Digital Securities Limited, HashKey Exchange, etc. Currently, cryptocurrencies like USDT cannot be traded directly on licensed exchanges and need to be facilitated through BTC/ETH spot channels.
Practical example with HKVAX: Behind it is Victory Securities, which holds multiple licenses and can legally use Hong Kong's BTC/ETH spot channels to help users exchange, with funds transferred to a Hong Kong bank account.
Pros and cons: The advantages are good compliance, clear funding channels, and low risk of card freezing;
The disadvantages are that residents from the mainland cannot open accounts directly, may need help from overseas friends and relatives, and small cash outs may require physical presence in Hong Kong, which is relatively cumbersome.
2) Selling through OTC methods at leading exchanges like Some An, Some K, etc.
Characteristics: Low cost, can open accounts and operate independently.
Risks: It is one of the channels that can easily collect dirty money, bank cards may be frozen, and funds may be confiscated by judicial authorities. It is recommended to choose counterparties with high credibility for transactions.
3) U cards for cash
Compliance: Some U cards can be linked to commonly used apps, overall the issue is not significant.
Risks: Many card agents, need to choose reliable and KYC-compliant ones; there is a possibility that service providers suddenly stop their services.
4) Currency dealers for cashing out U
Risks: Similar to the OTC cashing out from exchanges, may collect dirty money leading to card freezing or investigations, do not easily trust promotions like “card freezing guarantees”, careful selection of partners is necessary.
5) Offline cashing out U in Hong Kong
Operation and requirements: Need an overseas bank card, there are two types of physical stores in Hong Kong: ATMs and small offline shops.
Transactions below HKD 120,000 generally do not require registration, and simple KYC is needed for amounts over HKD 120,000, with fees around 4%.
Suggestions: Ordinary users with clean funding sources can choose this option, but there is a risk of collecting dirty money; it is recommended to exchange at stable stores in Mong Kok, Tsim Sha Tsui, etc.
In summary: Currently, there is no absolutely safe and perfect cashing out U scheme, all methods carry risks, and it is recommended that everyone consider carefully before making a decision.
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