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China and legal cryptocurrency accounts


Five Chinese banks indicated that cryptocurrency accounts have been frozen by local police. This as a result of a great repression against illicit activities.

Major Chinese banks respond

According to a June 13 Chinatimes report, the China Merchants Bank, the Bank of China, the Agricultural Bank of China, the Construction Bank of China and the Industrial and Commercial Bank of China similarly alleged that:

“As long as the operation is legal, the channel is legal, the source of the virtual currency is legal, the bank will not freeze the user’s funds.”

Except that:Unless there is some implication with money laundering, fraud and other related illegal cases

Although these banks confirmed that legal cryptocurrency accounts would not be frozen, some people claim that their accounts have been frozen without engaging in illegal activities.

Police Freeze Cryptocurrency Accounts

Local police in Guangzhou, a city in Guangdong province, have been freezing cryptocurrency accounts and bank cards for OTC market buyers, sellers, and merchants residing in China. Highlighting that, the restrictive measure began last Thursday.

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

According to the available information, the measure is produced due to a police investigation that suggests that said transactions may have been for money laundering activities that involve cryptocurrencies.

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

Users affected by these measures

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

A woman told Chinatimes, that she used her bank card to buy cryptocurrencies on a large Crypto Exchange. As a consequence, his account was frozen a week later. Nevertheless, “Later I learned online that many people recently had their cards frozen

Similarly, a Bitcoin miner 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

Similarly, Lou Jiyue, the wife of Yi Lihua, one of the first entrepreneurs in the monetary circle and a digital investor, also expressed himself saying: “Many recently frozen cards? Why are my three cards frozen?

Chinese banks increase their efforts

As a result of all that has happened, the People’s Bank of China (PBOC), has been increasing efforts to combat money laundering. For the reason that, many Crypto Startups have been investigated by local financial offices and the police.

But, while all this is happening, cryptocurrencies are still legal in China, as several Chinese courts have ruled so:

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

Furthermore, China passed the Civil Code in May, which protects cryptocurrency inheritance.

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

Do you agree with the measures implemented by the Guangzhou police and the banks, regarding cryptocurrency accounts?

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