The “Broken Card Operation” is being held across the country. This name sounds very scary, especially for OTC merchants in Amber and ordinary people in the cryptocurrency industry who are worried about freezing cards. They seem to see their bank cards disappearing, but the truth is true. Is that so? Industry insiders said that the OTC industry will suffer a cruel reshuffle in the short term, but it is not negative for the cryptocurrency industry in the long run.
According to news from China Changan.com, on October 10th, Du Hangwei, deputy minister of the Ministry of Public Security and convener of the inter-ministerial joint meeting, attended the State Council’s inter-ministerial joint meeting on cracking down on new types of illegal and criminal telecommunications networks. An important source of the continued high incidence, the harm is very serious. It is necessary to effectively strengthen the sense of mission, responsibility, and urgency in carrying out the “broken card” operation , and severely crack down on illegal crimes of illegally opening and selling phone cards and bank cards.
The meeting demanded that a large number of illegal criminal gangs selling “two cards” were arrested, a large number of key areas where “two cards” illegal and criminal were rampant, a large number of “two cards” illegal and untrustworthy personnel should be punished, and all illegal activities should be cut off. The “Two Cards” industry chain resolutely eliminates the breeding ground for telecommunications network fraud crimes.
The meeting required the establishment of a mechanism in accordance with the principle of “who issues the card, who is responsible”, improve work measures, improve technical means, strengthen accountability for interviews, and make every effort to cut off the illegal opening of “two cards” channels. It is necessary to strengthen credit sanctions. Units and individuals that rent, sell, lend, purchase bank accounts or payment accounts and related organizers identified by the public security organs fake the identity of others or fabricate agency relationships to open bank accounts or payment accounts, Implement disciplinary measures for suspending non-counter business of its bank accounts and all business of payment accounts within 5 years, and not allowing them to open new accounts.
Also participating in the meeting were the Ministry of Industry and Information Technology, the People’s Bank of China, the Supreme People’s Court, and the Supreme People’s Procuratorate. It is reported that since the beginning of this year, 155,000 cases of telecommunications network fraud have been cracked across the country, 145,000 suspects have been arrested, an increase of 65.6% and 74.1% respectively year-on-year, and more than 100 billion yuan of funds involved in the case have been successfully stopped and frozen.
Wu said that the blockchain had previously exclusively disclosed that because many OTC merchants were on the “disciplinary list”, all bank cards under their personal identities stopped non-counter transactions, “no cards can be opened for five years, and non-counters cannot be opened for three years.” Related to this broken card operation. In the OTC transaction of cryptocurrency, due to the receipt of black money or the frozen card involving cryptocurrency, the behavior of changing bank cards or even buying and selling bank cards often occurs. Some merchants engaged in RMB OTC will require employees to use personal bank cards for transactions.
Of course, it is more serious that it involves telecommunications fraud. In early September, a resident in Yangling, Shaanxi was defrauded by a gang of more than 500,000 yuan in the form of “killing pigs.” After the police discovered that about 500,000 yuan of fraudulent funds had flowed into OKEx, they exchanged digital currency through the OTC merchant, which led to the OTC merchant in Jiangsu. Was hunted across provinces. The buying price of USDT on Huobi on the evening of the 12th was already higher than the selling price, indicating gold pressure.
Reference: Exclusive: Major OTC dealers on mainstream platforms were involved in the Shaanxi “Pig-killing Case”, exclusive: Many OTC dealers entered the central bank’s disciplinary list, and banks’ risk control efforts were increased
However, the article “Freezing of Foreign Trade Accounts”, which was popular all over the country a week ago, was suspected of being partial and comprehensive, and took a few local behaviors as the core reason for freezing cards. But in fact, the national top-level plan to crack down on telecommunications crimes is the reason for the freezing of a large number of suspected accounts, especially some historical behaviors have also been held accountable, so a large-scale freezing of cards has occurred, such as the previous Dongguan incident.
For the cryptocurrency industry, due to the inherent anonymity of cryptocurrencies such as Bitcoin, it has become a money laundering transaction channel for some gray and black industries. Telecom fraud, pornography, gambling, and drug use of cryptocurrency to launder money have a growing trend. But for ordinary users with normal investment, the state has increased its efforts to rectify telecommunications fraud, which can reduce the inflow of black money from the outside and prevent ordinary users from being injured by mistake.
Industry professionals also suggest and hope: First, the supervisory authorities’ crackdowns should be sustained and institutionalized, otherwise telecom fraud and black money will re-emerge after the crackdown; second, if the meeting requires “who issues the card, who is responsible”, the bank should respond Establish a better risk control mechanism to avoid the inflow of black money; thirdly, bitcoin transactions and investments are not illegal, and the bank and the supervisory authorities should avoid the expansion of the crackdown and accidentally hurt ordinary investors.
Xia Wei, a lawyer in the cryptocurrency industry, expressed a similar view to Wu said that blockchain is unsustainable. He believes that sports law enforcement is unsustainable. Regulators need to do follow-up work at the legislative level, which will have a positive effect on the cryptocurrency industry in the long run. But for the OTC industry, it will experience a cruel reshuffle in the short term, and the surviving team will gain more benefits in the market.
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risk warning
According to the “Risk Reminders on Preventing Illegal Fund Raising in the Names of “Virtual Currency” and “Blockchain”” issued by the China Banking and Insurance Regulatory Commission and other five departments, please establish a correct investment philosophy. The content of this article does not endorse any operation and investment activities promotion , Investors are invited to increase their awareness of risk prevention.
