Major banks will not freeze virtual currency bank cards? False!

Hello everyone, I am Mr. Cai on the chain who pretends to be the young wave and hangs out with everyone. This is the second blockchain article by "Mr. Cai on the Chain". The previous article criticized exchanges, and this article criticizes the media. Any similarities are intentional.

Yesterday, a report on the "Global Blockchain Breakfast" about the responses of major banks to "freezing cards" made Mr. Cai, who has become a post-wave investor, suddenly feel a surge of justice, and he felt he needed to step forward and save the people who had been defrauded from their money from dire straits.

The media reported that the reporter consulted the customer service of China Merchants Bank, Bank of China, Agricultural Bank of China, China Construction Bank and Industrial and Commercial Bank of China, and the responses from each bank were roughly the same: "As long as the operation is legal, the channel is legal, the source of virtual currency is legal, and the page supports bank card services, the bank card will not actively freeze the user's funds unless it involves illegal cases such as money laundering and fraud. At the same time, the reporter logged into the pages of various virtual currency exchanges. OTC transactions can be traded using Alipay, WeChat and bank card accounts of major banks, and there is no risk warning page reminder when operating transactions." Teacher Cai, who pretends to be a young man, has many years of experience in dealing with regulators and banks, and believes that there must be something fishy. Banks are under the jurisdiction of the central bank, and the central bank issued the "Notice on Carrying out Self-Inspection and Rectification of Providing Payment Services for Illegal Virtual Currency Transactions" in 2018, requiring all legal person payment institutions under its jurisdiction to carry out self-inspection and rectification work in their units and branches from the date of the release of the document, strictly prohibiting the provision of services for virtual currency transactions, and taking effective measures to prevent payment channels from being used for virtual currency transactions. Did the central bank suddenly show mercy and allow banks to provide payment services for virtual currencies? This is contrary to the current high-pressure policy of the central bank on virtual currencies. In particular, the central bank has recently set a lower starting point for the management amount of public and private accounts in various places, and the payment management is becoming more and more strict. How can virtual currency services be liberalized? Assuming that the services of legal virtual currencies are liberalized, if there is no supporting supervision, such as KYC and AML, then the supervision of fund account transactions in various places will not become an empty talk? Given that the global blockchain breakfast only reprints but never indicates the source of the reprint, Mr. Cai, who pretends to be a later wave, took some effort and finally found its original source. It turned out to be from a report of the China Times on the recent frequent "freezing of cards".

The main point of the original article of China Times is that the country has recently increased its efforts in anti-money laundering and anti-fraud, resulting in frequent card freezing incidents. In order to understand the whole process of freezing cards in various banks, the reporter called the customer service of several major banks and got the reply that legal virtual currency bank cards would not be frozen. Is this really the case? Logically speaking, anyone with a little common sense should know that reporters should not call customer service to inquire about such sensitive and policy-marginal business, because general customer service has only received simple training and mainly handles routine needs and services. Many customer service staff may not be very familiar with the policies of their own banks, and if you ask 10 customer service staff, there may be 10 answers. If you want to get an accurate and reliable answer, at least you have to find the corresponding executives or legal and compliance department heads of the headquarters of major banks. It is too hasty to simply infer the virtual currency policy of major banks from the answers of customer service. Teacher Cai, who pretended to be a later wave, called the executives and the general assistant of the head office of two major banks, took out the report and carefully asked them about their policies on providing virtual currency services. Their answers were all firm and there was no possibility of violating the central bank's ban and providing virtual currency services, regardless of whether it was legal or not.

The lack of rigor in the work of Huaxia Bank reporters gave the cryptocurrency media with ulterior motives an opportunity to take advantage of it. Ignoring the full-screen report reminding users that the current bank card freezing policy is tightening, the unscrupulous cryptocurrency media took the report out of context and only focused on the imprecise paragraph, and came to the absurd conclusion that "major banks responded that they would not freeze bank cards for legal virtual currency transactions." As we all know, experienced industry veterans will never indicate sensitive words such as buying Bitcoin when transferring money, so as to avoid having their cards frozen. If a novice is misled by such reports and relaxes his vigilance, does something stupid and gets his card frozen, he can only blame himself for the loss.

In fact, in the eyes of banks, virtual currency payment services belong to the gray area. Although the central bank explicitly prohibits it, it is difficult to confirm and investigate. Therefore, as long as the transaction is not too ostentatious, they can only turn a blind eye at present. The so-called "legal" in the customer service answer, that is, it has not been actively found to be illegal by the bank, and can only be regarded as a legal transaction. But this is completely different from the public support of legal virtual currency services by major banks. Now the bad currency circle media is blatantly advocating that "major banks will not freeze virtual currency bank cards." Doesn't this force major banks to express opposition and squeeze the gray space that has been gradually reduced?

I don’t know if these media are really stupid or really evil.

Mr. Cai, who pretends to be a young person, calls on some cryptocurrency media to at least have some basic professional ethics and bottom line. He also hopes that cryptocurrency novices can use common sense and logic to judge the information they receive. The cryptocurrency circle is a place where good and bad people mix together. Be more careful and don't be led astray inexplicably.

Fortunately, you have me, Teacher Cai, who pretends to be the younger generation. You must pay attention to me, otherwise you will be led astray.