While regulation continues to loosen around crypto in the United States, largely thanks to a president who accepts bribes via his own meme and stablecoins, the opposite is occurring in China.
Indeed, dozens of Chinese nationals have taken to social media to report that just putting “Dogecoin” or “$USDT” in the memo field of a transfer ends with the bank account being frozen — and the individuals have almost no recourse for their money getting unfrozen thereafter.
Drastic difference in banking regulations
Despite the near total normalization of buying, selling, trading, and creating cryptocurrencies in the US — including a stablecoin endorsed and partially owned by the president — China and its retail banks have taken on a much stricter set of rules and regulations.
In one instance, according to a site called Techub.info in China, two clients of China Construction Bank (the third largest bank in the world) had their accounts frozen after transferring a mere 250 yuan, or $35, between one another with the memo “Dogecoin this week.”
After sending the money the bank flagged the transfer under its virtual currency control risk management program.
Rednote users warn Chinese citizens
On Rednote, users are sharing the story with words of warning for others in China: never put bitcoin, virtual currency, any memecoin, or $USDT as the reason for a fund transfer or you will absolutely face an account freeze.
Rednote users are warning others to never put BTC or any memecoin as the reason for a fund transfer.
Read more: China’s Regulation 42 forces Tether to kill its CNHT stablecoin
They add that the only way to get one’s bank account unfrozen is to prove to to bank officials that money wasn’t in fact used to purchase cryptocurrencies, write a statement as to why a cryptocurrency was referenced, and wait for the statements to be reviewed.
The entire process can take weeks to occur, if the account is unfrozen at all.
Needless to say, Chinese citizens are being more cautious than ever before when it comes to using their bank accounts for cryptocurrency trading.