Hong Kong’s regulation of cryptocurrencies has yet to be finalized, but banks are suspected of treating cryptocurrency buyers’ transfers as abnormal transactions. According to reports, some netizens in Hong Kong used the C2C platforms of exchanges such as Binance to buy and sell cryptocurrencies. They were suspected of using the inter-bank transfer service in Hong Kong, and their accounts were eventually cancelled by the bank.
According to the online media “BusinessFocus”, the banks suspected of canceling the bank accounts of cryptocurrency users include Bank of China, Zhongan Bank and other banks. The owner complained to the online media that the bank asked to cancel his account, but did not explain any reason, only emphasizing that it was “based on commercial considerations” and that the bank’s practices lacked transparency.
In response to the online media’s inquiry, ZhongAn Bank pointed out that if there is an abnormality in the bank account, or if the customer fails to cooperate with the bank’s request to provide the required relevant information, the bank will take appropriate risk mitigation measures according to the situation. The bank pointed out that during the review process, it will maintain good communication with customers. If customers have any comments, they can report to them, and the bank will follow up according to the actual situation.
In response to the online media inquiries, Binance pointed out that each case is different and may involve personal information of users, so it cannot comment on the overall situation. But they advise users to contact their banks to find out why their accounts have been frozen. Binance refers to the risk of crypto-asset trading, and users should evaluate their own financial situation and risk tolerance.
Netizen analysis pointed out that cryptocurrency exchanges such as Binance provide customers with C2C platforms. When customers buy cryptocurrencies or stablecoins, the exchanges will deduct the relevant currency first, and buyers use the funds in their personal accounts to use the “transfer rate”. Quick” and other tools are transferred to the personal account of the cryptocurrency seller. After the seller has actually received the payment, the exchange will release the user’s cryptocurrency or stablecoin to the buyer. When buyers acquire stablecoins, they can buy other cryptocurrencies on exchanges such as Binance. Many banks and credit cards do not allow customers to buy and sell cryptocurrencies directly, but through the above C2C platform, banks cannot know that users are conducting cryptocurrency transactions.
The online media “BusinessFocus” quoted people in the banking industry as saying that banks do not know whether transfer transactions such as FPS are ordinary commercial transfers, cryptocurrency transactions or money laundering activities. The reason for large-amount transfers may even freeze or cancel the customer’s account to avoid trouble.
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