As a 10-year veteran in the cryptocurrency industry, my card has not been frozen once in the past three years. So I have more say on this issue.

I will take the most common question asked by retail cryptocurrency investors in the group, namely, deposit and withdrawal transactions in exchanges as an example, to discuss how to avoid card freezing in OTC transactions.

(1) For OTC transactions, try to choose large platforms such as Binance and EURUSD. These platforms have good communication channels and risk control measures with mainland regulatory agencies and law enforcement agencies.

(2) Try to choose an OTC platform that supports T+1/T+2 withdrawal strategies. Although you cannot withdraw cash immediately after selling coins, it reduces the risk of money laundering through OTC transactions. For example, Binance T+1 and Huobi Strict Selection Trading (compared to free trading, T+2 withdrawal).

(3) Avoid directly using stablecoins such as USDT for OTC transactions. Try to use mainstream currencies such as BTC and ETH for OTC transactions.

(4) The bank card used for OTC transactions must be a separate card that is not used on a regular basis and must be separated from salary cards, etc. This way, even if it is frozen, it will not affect the use of other funds. It will also be easy to explain the flow of funds when cooperating with an investigation.

(5) Bank cards used for OTC transactions should be issued by local banks as much as possible, such as city commercial banks and rural commercial banks in various places. Large and medium-sized joint-stock and commercial banks such as ICBC, ABC, CCB and CCB have branches all over the country, so law enforcement agencies can basically freeze their cards directly.

(6) Do not trade frequently with fixed merchants or fixed users. If the same user makes more than three indirect purchases in one day, or sells the goods a few hours after buying, it is very dangerous and may be suspected of money laundering.

(7) Find reliable OTC merchants to trade with. Try to take orders from large merchants and market makers, place fewer orders, and avoid merchants in problem areas. In fact, as an ordinary user, it is difficult to tell which merchants are reliable. For example, a large number of friends who traded with Huobi Blue Shield service merchants also had their cards frozen.

(8) Reduce the frequency of cash withdrawals and increase the amount of cash realized.

(9) After the OTC transaction, do not transfer the money to other bank cards to avoid contaminating other funds. It will be troublesome to cooperate with the investigation. If you need money urgently, you can withdraw cash through ATM or spend it online.

(10) Try to cash out during weekdays. It is best to trade during normal working hours such as weekdays, such as between 9 am and 9 pm.

(11) Do not transfer the money out immediately after receiving it. After selling USDT for RMB, do not transfer it out immediately, but keep it in the account for a while.

If our credit card is frozen, how should we explain it to prove that we are not involved in money laundering activities?

(1) The individual is engaged in normal Bitcoin trading transactions and does not involve money laundering or other transactions;

(2) He was unaware that the money he received from selling coins was suspected of being a crime;

(3) Cooperate in providing all transaction records, chat records, on-chain transfer records, etc.;

(4) You must be very clear that your personal digital asset transactions do not violate the law.

In OTC transactions, if the bank card used to withdraw funds is frozen by the public security or judicial authorities, what materials will the other party require the individual to provide in order to unfreeze it?

Common information that needs to be provided mainly includes: complete transaction records, such as bank card statements, on-chain transaction records, order records of the trading platform, WeChat chat records (including the content of the communication process of the transaction), and other evidence that can prove the legality of the assets, and even proof of income.

If your withdrawal amount is relatively large (more than 10 million), it may not be suitable for the OTC trading model. You can seek a more secure way, which is the advanced anti-freeze strategy. #荣耀时刻 #BTC #ETH