September 24 from the People’s Bank of China website was informed that the People’s Bank of China, the Central Internet Information Office, the Ministry of Public Security and other ten departments recently issued a “notice on further prevention and disposal of the risk of speculation in virtual currency trading” (hereinafter referred to as “notice”), the “notice” again clear, virtual currency does not have the same legal status as legal tender, virtual currency-related business activities are illegal financial activities. To strengthen the monitoring and early warning of the risk of speculation in virtual currency trading as well as to build a multi-dimensional and multi-level risk prevention and disposal system for speculation in virtual currency trading. The risk of virtual currency investors ushered in a huge risk, the first thing is to comply with the provisions of the state, for the virtual currency as soon as possible back to the domestic funds is the safest, the sale of digital currency may have the risk of freezing bank accounts, should be how to safely transfer the number of virtual currency investment back to the domestic funds? Here’s an explanation for you
If you want to reduce your losses funds transferred back to the domestic, you must certainly first understand how domestic investors and currency exchanges to access the funds, domestic investors in the country, and the exchanges are outside the country, virtual currency investors are generally required to sell virtual currency through international remittances to the exchange’s offshore account, but the exchange remittances to the domestic investment bank account, because the mainland has foreign exchange controls. This operation is definitely not possible, the exchange can only go through the third-party institutions for transactions, the third-party institutions are generally divided into two ways, one is the domestic settlement, out of the money. The second one is domestic settlement and foreign payment.
The first way is to transfer the funds from the virtual currency investor (A) to the domestic account provided by the platform, the domestic account of the third-party institution to settle the outgoing funds, accept the funds from (A), and then the offshore account of the third-party institution to fund the exchange account of (A). This completes the process of depositing funds. If (A) wants to sell the virtual coins, the exchange will transfer the funds to the third party’s offshore account after getting the selling information, and the third party will then transfer the funds to (A)’s bank account through the domestic account. This process is the withdrawal of funds, this operation is very fast, basically the same day to the account.
The second type is similar to the first one, but the difference lies in the withdrawal of funds from the exchange. The third party remittances from foreign banks, in this case it usually takes 1-3 working days according to the international cross-border remittance time.
These two methods are convenient but risky, third-party institutions are often involved in money laundering, fraudulent illegal accounts, the amount of the transaction process is greater than 50,000. This is why some investors sell currency on regular platforms and their bank accounts are frozen, the platforms are regular but the third party institutions are not.
After 9.25 central bank and other ten departments issued the announcement, the crackdown is more stringent, the first priority must be to convert the investment currency into domestic funds, want to safely convert back to the domestic must bypass the third-party institutions, the domestic words virtual currency has been defined as illegal, but in foreign words is still recognized, such as Hong Kong, Singapore, Switzerland’s banks can accept the exchange of gold. Investors apply for overseas bank accounts, convert virtual coins into Hong Kong dollars or US dollars, deposit the funds to the offshore bank account, and then send international remittances from the offshore bank account to their own domestic accounts, so that they can safely sell virtual coins to recover their losses.
Investors should go along with the trend, do not underestimate the determination of the state, already understand the attitude towards virtual coins, do not take a chance, should safely take measures to reduce losses. It is the first to bear the brunt.
