How to effectively prevent the risk of being frozen in OTC transactions?
When conducting OTC (over-the-counter) transactions, the risk of freezing bank cards has always troubled many investors. In order to ensure the safety of funds, the following points can effectively prevent the bank card from being frozen due to receiving black money:
Choose a large platform
Prefer large platforms: Choose large OTC trading platforms such as Binance and EURUSD. These platforms have good communication channels and risk control measures with mainland regulatory agencies and law enforcement agencies, which can effectively reduce the risk of freezing.
T+1/T+2 withdrawal strategy: Try to choose an OTC platform that supports T+1/T+2 withdrawal strategy. Although you cannot withdraw money immediately after selling coins, this mechanism can reduce the risk of suspected money laundering through OTC transactions. For example, Binance's T+1 withdrawal and Huobi's strict selection transactions (T+2 withdrawal) can both provide certain security guarantees.
Avoid using USDT directly
Mainstream currency transactions: Try to avoid using stablecoins such as USDT for OTC transactions. It is recommended to use mainstream currencies such as BTC and ETH for transactions, which can better ensure the legality and transparency of the transaction.
Use a separate bank card
Independent bank card: The bank card used for OTC transactions should be a separate card that is not normally used and should be separated from the salary card, etc. Even if it is frozen, it will not affect the use of other funds, and it is easy to explain the flow of funds when cooperating with the investigation.
Local banks: give priority to using cards of local banks, such as city commercial banks, rural commercial banks, etc. Large and medium-sized banks such as ICBC, ABC, CCB, and CCB have outlets all over the country, making it easier for law enforcement agencies to freeze cards.
Decentralized transactions and selection of reliable merchants
Avoid frequent fixed transactions: Do not frequently trade with fixed merchants, and avoid multiple transactions with the same user in one day. Such behavior can easily be regarded as money laundering suspicion.
Choose reliable merchants: Look for reputable OTC merchants to trade with, try to take the initiative to accept orders from large merchants and market makers, place fewer orders, and avoid trading with merchants in problem areas.
Withdrawal strategy
Reduce the frequency of cash withdrawals: Reduce the frequency of cash withdrawals and increase the amount of cash withdrawals per transaction to reduce the possibility of triggering anti-money laundering alerts in the banking system.
Avoid fund contamination: After OTC transactions, do not transfer funds to other bank cards to avoid contaminating other funds. When you need money urgently, withdraw cash through ATM or spend it online.
Choose to cash out on weekdays: It is best to conduct cash out transactions during normal working hours on weekdays (9 am to 9 pm) to reduce the risk of abnormal transactions.
Delayed transfer of funds: Do not transfer funds immediately after receiving them. Leave the funds in the account for a while and observe the transaction status.
Dealing with blocked bank cards
If it is unfortunately frozen, how should it be explained and resolved?
Explain the legality of the transaction
Normal transaction description: This is a normal individual Bitcoin buying and selling transaction, and does not involve illegal transactions such as money laundering.
Statement of ignorance: I am unaware that the money I received from selling coins is suspected of being a crime.
Provide evidence: Cooperate in providing all transaction records, chat records, on-chain transfer records, etc. to prove the legitimacy of the transaction.
Clarify the nature of the transaction: individuals are engaged in legal digital asset transactions and do not violate the law.
Information required to lift the freeze
Generally, the following information is required to lift the freeze:
Complete transaction records: including bank card statements, on-chain transaction records, and order records of trading platforms.
Communication records: WeChat chat records (including the content of the transaction process).
Other proof: evidence that can prove the legality of assets, such as proof of income, etc.
Bank risk control and public security freezing
Bank risk control freeze:
Bring your ID card and bank card to the bank where you opened the account and submit relevant bank statement reconciliation certificates.
If it involves policy instructions from the public security department, you will also need to go to the local public security department to cooperate with the investigation.
Fill out the anti-fraud application form and pass the review before the funds can be unfrozen.
Public security and judicial freeze:
Observe for 3 days to see whether the temporary suspension of payment is converted into a formal freeze (extended for half a year).
If it is converted to a formal freeze, go to the bank where you opened the account to inquire about the freezing information (name of the public security unit, case number, name of the responsible police officer) as soon as possible.
Contact the responsible police officer to understand the reason for the freeze and cooperate with the investigation. The account will be unfrozen after proving that there is no illegal behavior.
By following the above suggestions, investors can effectively reduce the risk of being frozen in OTC transactions, and at the same time, they can take quick measures to ensure the safety of their funds when they encounter a freeze.
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