China Blacklisted Some Crypto Sellers


Businesses trading cryptocurrencies in China-based OTC markets face heavy sanctions. With the new decision, the Bank of China plans to prevent money laundering activities in the country through crypto money.

According to reports published in local media, the Bank of China has imposed bans on some cryptocurrency accounts that trade OTC. Blacklisted accounts will not be able to perform online transactions for 5 years and will not be able to use cards issued by any bank for 3 years.

How will the process work?

Banks’ risk management systems will detect accounts that make OTC transactions and restrict accounts. Afterwards, a report will be submitted by the bank to the relevant regional branch of the Central Bank of China for the black list of the account. The account information included in the list will then be shared with all Chinese banks and sanctions such as preventing the opening of new accounts will be imposed.

The Bank of China announced that it is partnering with local banks in the country in the first months of 2020 to prevent the proliferation of illegal funds. It has been announced that the new “black list” decision is a general decision, not only for those who make crypto money transactions. The move is intended to be a deterrent to illegal financial activities.

Huobi: Crypto Coins Have Nothing To Be Afraid Of

The fact that the ban to be implemented was not explained in full detail caused uncertainty in the public opinion. Some cryptocurrency operators trading OTC have already closed their businesses to avoid future sanctions. But some cryptocurrency followers argue that this does not affect normal cryptocurrency transactions.

Huobi, the crypto currency exchange that supports the execution of OTC transactions, made statements to the local press on the issue. Ordinary crypto money transactions will not be affected by prohibitions; He said these sanctions would only apply to illegal activities such as money laundering.


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