Chinese Banks Will Not Freeze Accounts If Cryptocurrency Source is Legal
Of late there were rumors that Chinese banks are freezing accounts of clients who are suspected to have invested or traded in cryptocurrencies.
As Per China Times report, the country’s banks have explained that they are closing down any authentic fiat to cryptocurrency accounts.
As per the report, China Merchants Bank, Agricultural Bank of China, industrial and Commercial Bank of China, Bank of China and China Construction Bank responded by stating:
“As long as the operation is legal, the channel is legal, the virtual currency source is legal and if the web page also supports the bank card service, the bank will not actively freeze the user’s funds. Unless there is any involvement of money laundering and fraud and other illegal related cases.”
The scrutiny identified that OTC (over-the-counter) trades that back Alipay, WeChat and popular banks’ bank card accounts does not display any caution message while carrying out transactions.
Alipay management fund security division executive stated:
“As long as there is Alipay payment page, and must be legal operation, it will not involve funds freeze, account freeze and other issues.”
Even though none of the legitimate cryptocurrency related accounts would be frozen, industry insiders have once again asked investors and crypto enthusiasts to use a separate account for cryptocurrency related activities. They further stated that:
“It’s better not to use bank cards with important uses to purchase cryptocurrencies, such as deduction cards and wage cards related to mortgage and car loans.”
Alipay prohibited trades linked to Bitcoin and other cryptos. In September 2017, Chinese authorities announced a blanket ban on crypto related activities, including the operation of cryptocurrency exchange, and went to the extent of clamping down all activities pertaining to cryptos, including trading, within the country. Nevertheless, in May, Binance has supposedly registered a new domain under the country’s jurisdiction.