On September 14, 2017, the country officially issued a notice to ban cryptocurrency exchanges, requiring all cryptocurrency exchanges in China to completely withdraw from the Chinese market before September 30.
All domestic virtual currency trading platforms were ordered to close within a time limit and stop registering new users. As a result, the market value of the cryptocurrency circle was halved. This is the famous "94 Tragedy" in the cryptocurrency circle. Since then, the domestic cryptocurrency circle has been wailing, and exchanges with capabilities and resources have moved their entities abroad. Although the ban regards ICO activities as illegal financial behavior and clears all cryptocurrency exchanges in China, the development of the cryptocurrency market has not stopped. After several months of recovery, the threshold for domestic participation in the cryptocurrency circle has become higher and higher. The legal currency deposits and withdrawals in the cryptocurrency circle have gradually shifted from exchanges before 94 to a C2C legal currency transaction model.
At this time, the profession of "currency trader" began to emerge in the country.
At the same time, the corresponding risks of the circulation of some "black and gray" funds, such as fiat currency deposits and withdrawals, which were previously borne by the fiat currency accounts of the exchange, have also been transferred to the currency traders. The currency traders may inadvertently participate in illegal activities such as money laundering and face legal risks.
There are hungry wolves in front and fierce tigers behind. Jump out of the oil pan and into the fire pit. Beware of the vicious hands of unscrupulous merchants above and the iron fist of the government below.
What currency traders fear most is frozen cards, and what they fear even more is being cheated and having an uncle come to their door and press their heads!
The cryptocurrency traders who entered the OTC industry around 2018-20 benefited from the banking policies and domestic environment at the time. The bank risk control at that time was not as strict as it is now, and there were not too many restrictions on personal Alipay, WeChat, and bank card transfers. In addition, the encryption industry continued to develop. During that period, the daily turnover of cryptocurrency traders could easily reach tens of millions, and the profit from the price difference was relatively considerable, with daily income of hundreds of thousands. The earliest cryptocurrency traders who entered this industry made a lot of money.
Later, as telecommunications fraud cases became more rampant, cryptocurrencies were exploited by criminals due to their convenience in various aspects. OTC currency traders happened to be at the central hub between the crypto world and the real world. Whether you go from the crypto world to the real world, or from the real world to the crypto world, you have to go through the currency traders. OTC currency traders and retail investors are often the victims who are harassed by the funds involved in the case and have a high incidence of freezing.
In 2020, the country started the card-cutting operation and began to crack down on crimes involving two cards. Later, the 924 Announcement and the Anti-Fraud Law were introduced, and the policy stance became increasingly high-pressure.
The sources of funds received by exchange traders are nothing more than the following types of people:
1. Funds of retail spot cryptocurrency traders
2. Funds of leveraged contract holders
3. Funds of illegal currency exchangers
4. Gambler’s Funds
5. Money laundering team’s funds
6. Funds of Telecom Fraudsters
7. Funds of foreign exchange traders
8. Participating funds, funds of pyramid schemers
With tens of thousands of transactions, it only takes a one in ten thousand chance that there is a wolf in front and a tiger behind, and you will be doomed.
Since the cryptocurrency industry was targeted by the trading, gambling, and fraud circles, the cryptocurrency traders’ working environment has been polluted by large-scale illegal funds! Then the threshold of the cryptocurrency industry became higher and higher, and everyone began to panic. All major exchanges, including cryptocurrency traders, were trying to raise the threshold for capital entry. Various risk control mechanisms and cryptocurrency trader flow review mechanisms were invented to isolate illegal funds, but they were not very meaningful. You have never seen a smart way to check the flow and review the funds.
From time to time, there are rumors in the market that a certain currency trader has been arrested or someone has been suppressed.
The most representative case is the arrest of Zhao Dong, the "No. 1 OTC person" in the cryptocurrency circle. The reason was "illegal business operation and assisting in information network criminal activities". Zhao Dong may not know why he was arrested, because it was all operated by his team. A person who has long been financially free would not do evil things for a little profit. We don't know the privacy. The old people in the cryptocurrency circle 20 years ago should have heard of Zhao Dong, but the newcomers may not know his legend.
In recent years, more and more people have entered the cryptocurrency trading industry. In addition, due to the influence of various objective bull and bear cycles, the number of users who deposit and withdraw funds has shrunk sharply. The cryptocurrency trading industry is involuted, and the profits are getting slimmer and slimmer. There are more and more novices entering the cryptocurrency trading industry. There are already too many people and too little meat. Your profit margin may be only about 3 cents, and you may have to wait for several hours without receiving any orders! This industry is no longer suitable for novices.
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