In conventional understanding, the card will be frozen only if the cryptocurrency is sold and "black money" is received. However, in this wave of frozen cards, Wu Shuo Blockchain learned that there were rare reverse freezes in which "coin purchases were frozen." The reverse freeze was not only limited to OTC traders, but also involved ordinary individuals.

Ms. N, a small retail investor, used the legal currency of the Bank of China to buy coins on a mainstream platform a week ago. On the evening of the 6th, she suddenly discovered that her bank card had been frozen. Many people engaged in the unfreezing and OTC industries told Wu Blockchain that it was confirmed that there were a large number of reverse freezes in this wave, but most of them were merchants. Generally speaking, the vast majority of card freezes are due to "receipt of stolen money." Reverse card freezes when purchasing cryptocurrency are relatively rare.

what is the reason? Industry insiders told Wu Shuo Blockchain that the direct cause should be that there was a problem with the bank card of the seller who received legal currency. The background was that under the strict investigation of Guangdong JC, related multi-level accounts were collectively frozen. JC will even analyze the data on the chain, so that more merchants will be involved in the flow of funds and have their cards frozen.

However, some industry insiders pointed out that the reverse freeze is relatively less suspicious, and explaining the situation to JC will result in a faster unfreezing speed and a higher probability. However, because the understanding and handling of cryptocurrency vary greatly from place to place, there is no unified standard.

This wave of frozen cards has two major backgrounds:

1: This year the central bank has cracked down on money laundering, and the fines related to anti-money laundering in the first quarter have been almost the same as last year.

2: Dongguan, Guangdong and other places strictly investigate telecommunications fraud. In May, Guangdong police uncovered the first money laundering gang using virtual currency OTC.

OTC traders told Wu Shuo Blockchain that this wave of crackdowns have been traced back for a long time. Some trading accounts have not been traded for many months, but they are still frozen, resulting in a very large number of people being implicated. There is currently a lot of evidence pointing to a certain OTC trading team in the industry, because merchants associated with it have been frozen.

It is reported that OTC merchants on some mainstream platforms have recently reported that they have been actively frozen by the platform. It is suspected that the platform and regulatory monitoring are suspected of "leading dangerous funds to the platform's OTC trading market."

The cryptocurrency industry has its bright and dark sides. This card freezing incident highlights that the close integration of telecommunications fraud, gambling, etc. with cryptocurrency will cast a shadow on the prospects of the entire industry. Wu said Blockchain believes that since the demand for cryptocurrencies exists, a thorough "one-size-fits-all policy" will only make it flow into the shadows. Only by bringing exchanges and industries into compliance can they be better regulated.

Lawyers and industry insiders said that although being frozen is inevitable and is a probabilistic event, there are some basic matters that need to be paid attention to: for example, do not use bank cards from mainstream banks, Alipay, and WeChat for transactions; do not be greedy for cheap and conduct transactions with merchants without sufficient reputation. ; Do not use salary cards or mortgage cards to buy or sell coins; do not use a bank card for frequent transactions, etc.