Cryptocurrency

China and the accounts in cryptocurrencies legal

Five chinese banks, indicated that the accounts in cryptocurrencies have been frozen by the local police. This as a result of a major crackdown on illegal activities.

The main chinese banks respond

According to a report by Chinatimes of June 13, the China Merchants Bank, the Bank of China, Agricultural Bank of China, Bank of Construction of China and the Industrial and Commercial Bank of China claimed in a similar way:

“While the operation is legal, the channel is legal, the source of the virtual currency to be legal, the bank does not freeze the user’s funds”.

With the exception that: “unless there is some involvement with money laundering, fraud and other cases of illegal related.“

Although these banks confirmed that the accounts in cryptocurrencies legal does not freeze, some people claim that their accounts have been frozen without participating in illegal activities.

The police freezes the account in cryptocurrencies

The local police in Guangzhou, a city in the province of Guangdong, has been freezing the accounts in cryptocurrencies and the bank cards of buyers, sellers, and traders of OTC market residing in China. Highlighting that, the restrictive measure began last Thursday.

It is important to note that the OTC markets are one of the few options available for users in China interested in exchanging digital coins for coins fiduciary or cash.

According to the information available, the measurement occurs due to a police investigation, which suggests that those transactions may have been for money laundering activities involving cryptocurrencies.

However, the frozen accounts are not necessarily involved in irregularities and supposedly can be thawed if the authority finds no evidence of illegal activities.

Users affected by these measures

There are reports of people who say they are not involved in any illegal activity, but that their bank accounts have been frozen.

A woman said to Chinatimes, who used his bank card to buy cryptocurrencies in a great Crypto Exchange. As a result, your account will froze after a week. However, “later I learned from the Internet that many people recently, they had frozen their cards.”

In the same way, a miner of Bitcoin, whose bank account was also frozen, shared his story: “I have been notified that I can unfreeze my account, with the id card and related information“.

In a similar way, Lou Jiyue, the wife of Yi Lihua, one of the first entrepreneurs in the circle monetary and an inverter digital, was also expressed by saying: “how Many cards frozen recently? Why are they frozen my three cards?“.

The chinese banks will increase their efforts

In consequence of what happened, the people’s Bank of China (PBOC), has been increasing efforts to combat money laundering. For the reason that, many Crypto Startup have been investigated by the offices of financial and local police.

But, while all this is happening, the cryptocurrencies remain legal in China, as several courts chinese have so ruled:

The Intermediate People’s Court No.1 Shanghai, for example, ruled that Bitcoin is an asset protected by the law.The people’s Court of the District of Shenzhen Futian ruled that Ethereum is legal property with an economic value.

In addition, China adopted the Civil Code in may, that protects the inheritance of cryptocurrencies.

Finally, when discover transactions are unfair, the banks will take measures to intercept, freeze accounts and cooperate with the actions anti-money laundering.

Do you agree with the measures implemented by the police of Guangzhou and the banks, with respect to the accounts in cryptocurrencies?

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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