In China, they began to block bank accounts …
China began to block bank accounts of OTC crypto traders
The Chinese authorities have begun freezing the bank accounts of OTC traders on the pretext that their crypto and fiat assets are associated with illegal activities, writes CoinDesk.
The police check started last Thursday. A number of buyers, sellers and market makers in the OTC market have already announced the freezing of their accounts. The number of victims of these practices can be measured in thousands..
Xiaoxiao San, an ex-employee at Chinese crypto wallet startup Bixin, who currently runs his own OTC platform, wrote on Weibo on Friday that his bank account was frozen and this is not an isolated incident..
Affected users are not necessarily accused of any wrongdoing, and the incident may indicate the extent of the proliferation of fiat and digital assets associated with illegal activities. Bank account blocking can be a serious problem for Chinese users of cryptocurrencies, as OTC platforms are the only exchange channel for them using fiat money..
At this stage, it is unclear exactly which case the Chinese police are investigating, resorting to massive restrictions on access to bank accounts. According to Sun, such investigations usually involve electronic fraud, pyramid schemes and casino activities, but usually they do not affect the accounts of individual cryptocurrency holders..
“OTC traders have emerged whose bank accounts have been frozen over questions about the origin of their coins. This means that in addition to the “dirty money” now there are also “dirty coins” in circulation, “he wrote..
Sun also noted that large amounts of high-risk capital are increasingly being injected into China using blockchain networks. Previously, bitcoin was chosen for such operations, but over time, the stablecoin USDT became the leader. As a result, the police began to expand their understanding of the principles of blockchain operation and use tools to track the movements of digital assets..
Holders of frozen bank accounts should contact the relevant law enforcement agencies and provide them with evidence of their innocence. The unlocking period will depend on the severity of the case.
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