First of all, we must make one thing clear: Bitcoin holding is legal in China and is protected by law. The holding of other virtual currencies is mostly in a gray area due to the lack of legal basis. So why do banks restrict buying and selling? This action has nothing to do with compliance, but is an operation by the bank itself to reduce management costs.
Cryptocurrency can easily become a tool for money laundering because of its peer-to-peer payment feature. When the police are investigating money laundering cases, they will ask banks to cooperate in the investigation. Money laundering cases are also very complicated to investigate, and when financial technology tools are involved, it will also increase the difficulty for the police. In recent years, Huobi has used the astrology system to help police in many regions across the country solve a large number of money laundering cases. Without Huobi's support, many cases would take longer to solve.
From the perspective of banks, since it will increase management costs, it is better to do less than more. Adding some restrictions can reduce their own pressure, which has nothing to do with compliance. In fact, as long as you are upright and have not done anything illegal, the restrictions imposed by banks will be lifted quickly and will not harm your legitimate rights and interests.
For emerging things, the process of their promotion is always full of ups and downs.
It is important to point out here that cryptocurrency trading is a legitimate personal right, and related trading can also be carried out in China. This is clearly stated in the "Notice on Preventing Bitcoin Risks":
In other words, websites that provide Bitcoin trading services are not only allowed to be opened, but are also an important front for anti-money laundering work.
To understand this contradiction, we need to clarify a few things. First, trading cryptocurrencies is legal, and related platforms not only have rights and interests in this field, but also have the obligation to support anti-money laundering. Second, banks will have restrictions, not because of legal issues, but out of consideration of management costs.
Story 1:
It is legal to exchange RMB for US dollars, but banks limit Chinese citizens to only US$50,000 per year.
Story 2:
It is legal to buy and sell bulk futures, but the entry threshold of bulk futures exchanges is set very high. Usually, net assets must be greater than 3 million (it is not clear whether this number is the case now) to be allowed to participate.
Story 3:
The problem itself
Conclusion: As a new thing, some of the functions that Bitcoin can carry have exceeded the scope of the original rules set by banks. Therefore, banks have to impose restrictions.
However, the bank's restrictions on virtual currency also illustrate a problem: the influence of virtual currency is now growing, and it has reached a point where it must be taken seriously. Due to the anonymous nature of virtual currency, it can easily become a tool for money laundering, so it must be regulated.
As long as your transactions are legal, even if they are frozen by mistake by the bank, you can just go to the bank and resolve the issue. There is no question of restricting transactions, at most it is strengthening supervision.
The fear is that you really received black money, but that is because you received money from illegal sources, not virtual currency.
