Don't fall before dawn; this article summarizes almost all aspects of capital inflow and outflow, including U cards, and the pros and cons of capital outflow in Hong Kong.
In the WEB3 industry, it may really be time to gradually comply with regulations.
In this industry, you will encounter too many aspects of human nature. Newcomers are sincerely advised to stay away, as there are huge pitfalls waiting for you at every step.
In the blockchain market, there is no absolutely safe channel for U coin outflow. Retail investors should maintain a clear understanding of this. Below are some important suggestions from seasoned practitioners for retail investors:
The Limitations of Trust:
Trust is a very precious resource in the entire industry. Whether dealing with people you intersect with or project parties, we should maintain a certain level of skepticism and a verification attitude. In this industry, anyone can face significant problems or challenges.
The Importance of People: The cryptocurrency industry is fundamentally a people-centric industry. We must recognize the limitations of individuals and the uncontrollability of risks. To ensure your own safety, you need to rigorously examine your operational processes and strategies, and use your understanding to patch any potential vulnerabilities.
Treat every transaction with someone you trust as if it were your first transaction. You never know what the counterpart on the other end of the network has experienced today. Is their child sick? Did they lose money in online gambling? Did their business go bankrupt?
Information Verification and Trial and Error:
At the moment you send your money or interact with someone, you should verify the information you receive. When trying new trading strategies or trading with new counterparts, you should first use a small amount to test and learn, which can reduce risks and accumulate experience for subsequent large transactions.
No one will tell you how to make money unless they want to make money off you. So, when someone tells you this is a huge opportunity, it’s likely that they want you to fill a pit. You might think you can give it a try, so do it with a small amount to test and learn.
Awareness of Risks in Liquidating Digital Assets:
At any point in time, the funds from selling your digital assets may be frozen in the future. This does not depend on you but on the source of funds from your trading counterpart. Therefore, you should be fully prepared and conduct risk assessments before engaging in any transactions.
In summary, while the blockchain market is full of opportunities, it is also fraught with challenges. As retail investors, we should remain vigilant and continuously improve our understanding and skills to better protect ourselves in this market.
At this stage, when selling your assets on exchanges, you cannot verify the identity information of the coin merchants, so the funds you receive are mostly suspected of being fraudulent. This is called first-level involvement, and the police from other places may come to investigate.
In most external cases, the funds you receive belong to first-level involved funds, meaning the victim directly transferred money into your bank account. If you do not have a reasonable and legal path for fund transfer confirmed, the police from other places will come to verify the situation. Just yesterday, we received a consultation about an amount of over 4,700 yuan, and the user was actually afraid to freeze the account to explain the situation and even created false documents to deceive the police, asking if it could be resolved without going to another place. Such a person is inherently problematic.
Once the victim discovers they have been deceived and reports it, as soon as the police start an investigation, the funds in your bank account will be marked as involved funds. Regardless of when your transaction occurred, as long as your trading counterpart is involved in illegal activities or your source of funds is problematic, it will be frozen immediately.
You cannot know the identity of your trading counterpart, making it difficult to determine when your funds will become involved funds. Please note that during the process of cashing out U, you may encounter difficulties with trading counterparts having card limits, such as using other "family members'" bank cards to transfer funds or splitting limits for payment. Stop trading immediately, regardless of what the other party says; do not agree. When participating in high-risk industries like cryptocurrency, be sure to act cautiously and fully understand the potential risks.
A truly legitimate coin merchant would never have issues with card limits. I hope the above explanations provide you with clearer thoughts and guidance. When dealing with such issues, please act cautiously and consult professionals.
Every place has its own set of case-handling logic:
According to Article 14, Paragraph 1 of the "Tianjin Public Security Bureau's Regulations on Stopping Payment, Freezing, and Returning Funds Involved in Telecom Network Fraud," if the complainant reports that the involved funds relate to virtual currency transactions, it should not be recognized as "acquired in good faith."
Funds with clear flow are confirmed to belong to the victim.
Currently, there are still bloggers with half a tank of water introducing strategies for finding small banks using methods from 2018, including using Alipay, finding large merchants, observing transaction volumes, contacting major account managers, and utilizing outdated methods like credit cards. These have all been eliminated.
Please be aware that the funds of on-site coin merchants carry risks. Cryptocurrency traders often use various methods such as coin speculation (retail investors), foreign exchange (bulk), WD, pyramid schemes, and telecom fraud to conduct transactions. If these actions trigger the bank's risk control, they may be flagged by the bank's anti-fraud system and could be frozen by judicial authorities. Are you clear about the types of funds you encounter in exchanges?
Do you know that although the funds retail investors use for speculation may seem legitimate, once they purchase coins from you and participate in a funding scheme, if that scheme encounters problems and collapses, the funds flow back to you. Are you prepared to deal with such a situation?
How to achieve refunds, how to prove your innocence? This is not a threat but a genuine sharing based on my experience handling multiple such cases.
We need to clarify that everyone's position and viewpoint may carry subjective interests.
The important thing is action, not empty talk. I share what I have observed and encountered, conveying it in the simplest and most direct language to those who truly need it. My goal is not to create anxiety but to reveal the bottom-line behaviors of certain individuals in this circle. They only showcase the bright side, prosperity, and vitality of the market while refusing to expose the complex, dark, and cunning other side.
In the world of investment and trading, we must not only see the beautiful side but also be sufficiently alert to face potential risks. Only then can we move forward steadily in this complex and ever-changing market. Remember, transparency of information and a thorough understanding of risks are fundamental qualities for every investor. Let us work together to become wiser and safer investors.
Back to the point, once you understand the composition of funds in the cryptocurrency circle, you can also avoid the scenarios of cashing out U.
- Differences between scam platforms and legitimate platforms.
First, legitimate platforms have strict measures to ensure transaction security. They have risk control levels, KYC reviews, and risk control models, which ensure that the security level of user transactions is relatively high. Here, we refer to transaction security, which does not guarantee the safety of your funds.
However, scam platforms are entirely different; they often lack these important security measures. Even the simplest KYC review is absent, leading to an absurd phenomenon: you can easily pass manual review with a blank piece of paper. Such platforms lack necessary supervision and security guarantees, providing no substantial protection for investors.
In such an environment, scam platforms often become breeding grounds for illegal activities. Most illicit funds are laundered on such platforms. If you attempt to withdraw funds from these platforms, the money you receive is definitely illicit. This is also why engaging in recharge and withdrawal activities on these platforms can lead to your bank card being frozen, with a freeze rate exceeding 99%.
It is important to emphasize that the act of WD itself does not lead to your bank card being frozen; the real reason for the freeze is your recharge and withdrawal activities on scam platforms.
Some scam platforms, like U Ferry and U Dock, promote collecting U extensively on social media and planes, with prices reaching over 10 yuan. What is the operational logic of such platforms?
You buy U from a legitimate exchange at 7.2 yuan, then transfer it to U Ferry, listing it for sale at 10 yuan. When you receive the money, you think you’ve made a few thousand yuan just by flipping it, which feels great.
The principle is really simple, but how does it look from the perspective of U Ferry?
U Ferry directly connects with telecom fraud operators. As soon as you list an order, your bank card number appears on the platform. At this point, U Ferry's customer service provides your card number to the telecom fraud operator, who then sends your card number to the "pigs" (victims) being scammed. The pigs then transfer money to you.
You receive the funds, confirm receipt at U Ferry, and after a night, the pigs realize they’ve been scammed. When they report to the police, they tell the police that the money was sent to you, leading to an immediate freeze of your bank card, with a request for investigation sent to the police station where you opened your account.
Always remember, retail investors have no safe, simple, or convenient ways to make money. Such good fortune will never come to you. The idea that you can make money just by tapping your phone is impossible.
Virtual currency flipping is money laundering; remember this phrase.
Important information about platforms like Yibifu (now closed):
High Alert: Platforms like Yibifu (EB and similar virtual currency platforms) carry extremely high risks, with a freeze rate exceeding 95%, especially for large transactions, where the freeze rate can exceed 99%. Therefore, users are strongly advised to avoid trading on this platform, as well as various virtual currency products like PAY, EB, GB, etc., which are pegged 1:1.
Background Revelation: The Yibifu platform was previously a service provider for certain illegal platforms (like WD platforms). Users who have used this platform may quickly "unlock" the freeze card achievement, but such services are overpriced, and legitimate coin merchants cannot trade on this platform.
Transaction Mechanism Risks: When selling U (specific cryptocurrencies) on the Yibifu platform, users will not immediately have buyers transferring funds after listing their orders. Instead, telecom fraudsters will directly guide victims to transfer funds into your account, creating a time lag. You may inadvertently participate in a criminal scheme, so please be vigilant and aware of this risk.
Direct Black Operations and Risks: Trading on this platform is equivalent to providing your personal bank account information to criminals for operation. When scammers execute their schemes, they need your card number to transfer money to victims. This operational model is called "direct black," and during this process, you may be drawn into illegal activities and bear corresponding legal responsibilities.
In summary: Platforms like Yibifu and similar virtual currency platforms pose serious risks and fraudulent behaviors. It is recommended that users stay away from these platforms to avoid economic losses and legal risks.
Characteristics of Legitimate OTC Exchanges
Unlike scam platforms that lack norms and trust, legitimate OTC exchanges have comprehensive risk control mechanisms, strict KYC reviews, and a merchant deposit system. However, these guarantees alone are not enough. Because this industry is ultimately a people-centric industry, we need to face the limitations of individuals and uncontrollable factors. No matter how much coin merchants hope to earn more, this is also the norm in the industry.
Card Freeze Issues and Merchant Responses
When encountering a situation where your bank card is frozen, seeking help from merchants, you may hear them explain, "What does this have to do with the coins I sold you two months ago?" This reflects the information asymmetry and communication issues that may arise during transactions.
- Complexity of Merchant and Fund Flow
Sometimes, merchants may not even know why your card was frozen. Because during the flow of funds, although it may briefly stay with the merchant before quickly transferring to your account, if it is deemed "dirty money," the cardholder may ultimately face the consequences of a freeze.
- Advantages and Risks of Exchange Trading
The advantage of trading on exchanges is that transaction security can be guaranteed, and there is no need to worry about the marking of U. However, once you receive funds deemed "dirty money," your bank card may be frozen. Therefore, maintaining vigilance and caution during transactions is crucial.
In general, whether it is merchants or exchanges, they need to face and respond to various challenges and risks in the industry. As traders, we also need to enhance our risk awareness to protect our interests, while most retail investors do not possess the skills to discern these issues.
IV. Attention Needed for WeChat Groups, Planes, and OTC Transactions:
High Trading Risks: Choosing unknown scam platforms is akin to trading in an environment where risks are unknown. For those who are afraid to trade on legitimate exchanges, opting for anonymous environments is extremely dangerous, as such actions are likely to involve illegal activities.
Risks of Being Scammed and Account Freezes: Participating in such transactions not only exposes you to the risk of being scammed but also to the risk of having your bank card frozen. Once your bank card is frozen, if relevant chat records are deleted, it will be difficult to find effective evidence to prove your innocence.
Consideration of Legal Risks: We should think carefully about potential legal risks. If one day the authorities come to you, how will you explain your actions? We should choose legal and compliant trading methods to protect our rights and property safety.
In short, OTC trading on platforms like WeChat and planes carries significant risks and involves illegal activities. Retail investors should be wary of potential risks and choose legal and compliant trading methods to avoid unnecessary losses and troubles.
V. Issues with Cash Transactions in the Same City
Safety of Cash: No Freeze Risk: Retail investors can confidently choose cash transactions in the same city. Especially for those who are not making a living from trading, as long as they are not engaging in long-term large transactions, carrying or receiving cash will not face the risk of account freezes. However, do not engage in continuous or large transactions; occasional transactions are fine.
Clarification on the Source and Legitimacy of Cash: Do not let anxiety created by others influence you into thinking that cash transactions are all black market or illegal income. In real situations, especially when cooperating with familiar and trusted trading partners, such doubts are often unnecessary. Be aware that these so-called "issues" may only relate to your upstream business partners. Even if they face problems, as an occasional retail investor, holding and spending cash is completely legal.
Precautions During Transactions, Personal Safety First: When conducting cash transactions, the most important point is to ensure your own safety. Therefore, transactions must be conducted with familiar and trusted coin merchants, which not only helps protect your rights but also allows for timely communication and resolution in case of issues. Additionally, ensure that transactions are conducted in safe locations and environments to avoid unnecessary risks.
Summary: Cash transactions in the same city are safe and feasible for retail investors. As long as you pay attention to the above points, choose suitable trading partners and methods, and ensure your own safety, you can successfully complete transactions.
Never engage in multiple large transactions with strangers, as this is often a setup. Most setups involve capturing your phone's lock screen password and wallet transaction password under high-definition cameras, ultimately obtaining your wallet private key when you leave your phone unattended for 30 seconds.
Many people say cash transactions are safe, but the "Regulations on the Return of Frozen Funds in Telecom Network New-Type Criminal Cases" clearly state that cash can also be reclaimed.
VI. Cashing Out U in Hong Kong? The OTC Knowledge You See from Coin Merchants is Wrong!
Why are you a "chive"? Because any information you obtain through public platforms has already lost its reference value. There are many who are faster than you, which is also why many people become "chives."
This content may differ slightly from your understanding. If some people with lower education levels can't come up with better words to criticize me, they might as well call it a "woman's perspective." Hong Kong does not allow you to easily and conveniently cash out U; on the contrary, you will encounter many difficulties. This is a method used by bloggers who have never been to Hong Kong to deceive you. If you don’t believe it, ask them to show you their customs clearance receipts.
Now that you understand the logic, if you insist on listening to those half-informed bloggers who say Hong Kong can safely cash out U, what do you need to prepare to cash out U in Hong Kong? First, you need to prepare an overseas bank card (Hong Kong), claiming that ZhongAn Bank supports digital asset trading. You think it’s simple, right?
Sorry, what you see is merely a claim of supporting digital assets, not that it can support the liquidation of digital assets.
Some banks in Hong Kong claim to support digital asset trading, but is it useful? Digital currencies are not supported.
There are no tutorials on the entire internet showing how to convert digital assets into U at ZhongAn Bank in Hong Kong.
Why? Because there are no channels, and it’s not possible.
What procedures are required for retail investors to open an account at ZhongAn Bank in Hong Kong?
You must physically go to Hong Kong to connect to the internet, use your phone abroad to receive verification codes, register with facial recognition for real-name account opening, and provide exit records from the immigration bureau. Manual review is required for successful account opening.
You can also go to physical banks like HSBC or Standard Chartered to open an account, but you need to find an intermediary to make an appointment, prepare documents, and the fees are a few thousand yuan. Of course, you can also have your own aura like me; I didn’t use an intermediary and opened a VIP account myself, with a customer manager service. However, many people find it difficult to open a bank account domestically; do you think you can open one in Hong Kong by yourself?
Once you have a Hong Kong bank account, what methods can you use to obtain trading methods?
Go to offline exchange shops; the non-member price for cashing out U is about 7.73 HKD (around 7.09 RMB), which is a discount of 1.2 dimes, or about 2%.
They only give you cash in HKD, and you need to deposit the cash into your Hong Kong bank account and convert it to USD for convenience, which incurs another exchange fee.
Exchanging USD at the bank is roughly at a 7.21 RMB exchange rate. Going back and forth, your cost for one U is 7.21, losing 1.2 dimes, converting 7.09 to HKD, and then losing another 1.2 dimes when converting HKD to USD to deposit into your account. In total, you lose 2.4 dimes, which is about 4% in losses.
Do you think that’s the end? For retail investors cashing out large amounts of U, let’s say 1 million, losing 40,000 seems acceptable, right? But you have to register your KYC information with the authorities, including your name, phone number (Hong Kong), home address, passport information, and all real data.
Do you want to leave this information behind? OK, no problem. You successfully pass KYC and provide your information to the authorities, successfully depositing HKD into your Hong Kong account and converting it to USD. How do you bring it back to the mainland?
A Hong Kong card can withdraw 20,000 cash at ATMs in the mainland (if you continuously withdraw cash abroad for 50 days, see if they freeze your card).
Exchanging currency back to the country, you can submit documents to the bank for legal and tax proof for up to 50,000 USD a year.
For large transfers to overseas accounts, overseas banks will require you to provide the source of funds and tax proof.
Want to purchase USD overseas financial products? Sorry, the annualized return rate is 1%. Are you a bit brainwashed by those 11% and 4.8% annualized returns?
Some offer 11%, but that’s just new funds coming in to give you an 11% experience for a week. 1 million new funds going in doesn’t give you 110,000 a year, but rather the interest for the first week after dividing 110,000 by 12 months, which is about 2,100 yuan.
In fact, safely cashing out U is really a simple matter, but there are always people who want to argue:
You talk to them about safety, and they talk to you about losses.
You talk to them about fees, and they talk to you about convenience.
You talk to them about convenience, and they talk to you about an intelligence tax.
Those who boast to you either don’t have a passport or have never cashed out large amounts of U because they don’t even know what anti-money laundering is.
Whenever you encounter someone teaching you that cashing out U in Hong Kong is safe and has no losses, ask them to try cashing out 1,000 yuan themselves; they probably don’t even have an account.
Of course, if you say you made a lot of money and need to launder it, that group of people is not relevant to the theme of this article.
VII. The Importance of Understanding and Trusting Coin Merchants:
The Importance of Trust
Many coin merchants are actually building their brand IP, meaning that any action and decision relates to their reputation and status. No coin merchant with real-name authentication would choose to take risks and undermine their professional foundation after establishing a brand.
The Efforts and Challenges of Coin Merchants
In on-site trading in the cryptocurrency circle, many coin merchants pursue a profit margin of three points. However, behind this is their endless worry about fund security and the huge costs they incur. The sweat and tears they invest are often difficult to describe in words. They may prefer to transfer risks, hoping others will bear the risks and costs.
The Necessary Commitments and Guarantees from Coin Merchants
Legitimate coin merchants will provide full compensation for all funds frozen due to business activities in the future. This commitment is not maintained by brand reputation or professional ethics but is backed by solid evidence—proof of identity, property, and legitimate funding sources must be presented.
This is what is meant by unconditional full compensation for frozen cards; many shout slogans, but very few can deliver.
VIII. The So-Called U Card
The U card has been in use for three years, and its convenience has been quite satisfactory. However, the overall loss from fees is over 5%, making it suitable for small retail investors. Whether for buying groceries, taking taxis, or purchasing cigarettes, alcohol, or even foot massages, most U cards can handle these transactions easily. It is important to note that many Ponzi schemes use the name of the U card to conduct fraudulent activities.
A few years ago, it was a beautiful vision for the blockchain industry. I will not recommend any brands to avoid any suspicion of advertising. The downside is that obtaining one requires expensive fees and high transaction costs.
Of course, I still hope that brand merchants will come to me for advertising. The U card is the optimal choice for small retail investors' daily cash-out consumption. Please note that it is suitable for small retail investors who spend around 10,000 to 80,000 yuan a month; it is not suitable for large amounts.
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