The Central Bank of China began to blacklist the accounts of cryptocurrency traders
The People’s Bank of China has begun flagging bank accounts owned by large OTC traders, WuBlockchain reports.
The latest measures are part of a larger plan to combat money laundering. This year, the Central Bank of China engaged commercial banks to collect information on accounts and transactions in order to prevent illegal financial transactions, which may also include cryptocurrency transactions..
Asset movements across OTC accounts are often measured in millions of dollars. Clients blacklisted by the Central Bank will not be able to use bank cards for three years and carry out transactions on the network for five years. This is a general rule for all blacklisted accounts, including those outside the cryptocurrency industry..
Inclusion in the blacklist is carried out on the basis of the banking risk analysis system. The bank that detects suspicious activity must notify the regional branch of the Central Bank of this. This allows you to disseminate information among all banks and prevent unwanted customers from opening new accounts with other credit institutions..
According to WuBlockchain, as a result, many OTC traders may be forced to close their businesses under threat of sanctions. Industry participants point out that simply linking to cryptocurrencies isn’t enough to be blacklisted. “Normal cryptocurrency transactions are not illegal. Only dirty money is frozen, “said a representative of the Huobi exchange, which has its own OTC platform..
At the same time, the risks remain that the lack of clear regulation of cryptocurrencies in China will lead to the inclusion in the blacklist of traders who have not violated anything, and all decisions in this regard remain at the discretion of banks.
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