Cryptocurrency miners affected by "card freezing" have a big problem paying electricity bills

A senior miner said: " The most headache-inducing and difficult thing now is paying the electricity bill ."

Since the beginning of this year, the cryptocurrency industry has ushered in a "card freezing wave" due to the Chinese government's crackdown on telecommunications fraud and related money laundering. Zhao Dong and Xu Mingxing, two leading figures in the industry, are also reportedly under investigation for suspected money laundering. In a situation where everyone is in danger, many investors have reduced their withdrawals (cryptocurrency converted into RMB). However, there is a group that can do nothing about it, and that is cryptocurrency miners.

For miners, their main income is the cryptocurrency they mine, and their main cost is electricity. Since electricity bills need to be paid to the local power grid or hydropower station owner, most of them need legal currency. Therefore, it is difficult for miners to reduce their withdrawals, and the card freezing trend has a greater impact on them.

In a survey conducted by Wu Blockchain among the mining community, 74% of the miners surveyed said that the card freezing trend had a great impact on their electricity bill payments.

In the community, some big miners said that the most headache and difficult thing now is to pay the electricity bill. Another miner said that because he could not sell coins to pay the electricity bill, the mining machine has been shut down for a month. Some OTC merchants who specialize in serving miners have also terminated their business.

Some people also said that there are custodial mine owners who are willing to accept U. However, this situation is relatively rare, and generally only the mine owner bears the risk of freezing the card when withdrawing funds.

The risk of card freezing adds intangible costs to miners, and many miners have turned their attention to countries where cryptocurrency-fiat currency exchange is relatively compliant, such as developed countries such as North America.

As early as June, when Dongguan’s card freezing wave occurred, a large number of miners were affected. The core reason is that miners entered the industry early and most of them are familiar with OTC channels. The Dongguan incident is said to be caused by a problem with an OTC trader, which then spread to the surrounding areas, so it may involve some OTCs specializing in miners’ business.

Refer to the Cryptocurrency Circle Card Frozen Trend (3): Why are many Bitcoin miners’ bank cards frozen?

Regarding freezing credit cards, OTC merchant Sun Xiaoxiao previously proposed some basic and practical suggestions. Wu Blockchain has obtained Sun Xiaoxiao’s authorization to publish. Due to the length of the content, it has been slightly edited and is placed again at the end of the article for reference:

1. Don’t be greedy for cheap things. There are all kinds of people who anonymously receive/send USDT in QQ, WeChat, and tele groups. You must not accept such orders.
2. Go to a platform with strict KYC certification to find traders with a large number of transactions and a long transaction time. Now many platforms have done basic KYC certification, but some platforms' certification will be more stringent.
3. Try to use a specific card for a specific purpose, and do not use important bank cards such as mortgage cards to receive OTC funds. If possible, use a relatively small bank to receive OTC funds, such as various local commercial banks, etc. Bank cards can be reported lost and replaced with a new card number after six months or a year.
4. Try not to withdraw cash. Some people share how to withdraw cash to avoid risks. Doing so can cut off the online fund transaction records, but for Uncle JC, your withdrawal operation is equivalent to dirty money landing.
5. Keep complete transaction records, bank statements, on-chain transfer records, platform order records, WeChat chat records, etc.
6. If possible, find a familiar counterparty to trade with, because once a freeze occurs, if your counterparty is willing to cooperate with you to explain the situation, it will be helpful for unfreezing.
What to do if it is found to be frozen?
1. Contact the bank and obtain information about the freezing agency. The best case scenario is to know where the funds are frozen and get the contact information of the relevant case handlers.
2. Contact the relevant unit responsible for the freezing and explain your situation.
3. If you encounter rough law enforcement, this will not be discussed here.