Strategies for safely realizing cryptocurrency withdrawals in mainland China
My first cryptocurrency trading profit, also excited about the withdrawal, I originally thought small amounts in batches would be fine, slowly withdrawing.
Anyway, it can always be completed.
But unexpectedly, when I withdrew 200,000, the bank noticed and inquired about the source of income.
Only then did I slowly study safe withdrawal methods, during which I suffered many losses, encountered many scammers, and paid some costs just to teach the big shots a lesson.
First, you need to understand withdrawals, and to understand that, you must know the policies.
It is just to what extent the edge can be pushed.
Mainland China's cryptocurrency regulatory framework
Mainland China's attitude towards cryptocurrency is highly cautious. In 2021, multiple departments, including the National Development and Reform Commission, jointly issued a notice prohibiting cryptocurrency trading and mining activities. Subsequently, in 2025, regulations were further upgraded: multiple sources indicate that China implemented a comprehensive ban covering trading, mining, and personal holdings, aimed at preventing financial risks and capital outflow. For example, legislation passed on May 30, 2025, explicitly prohibits individuals from holding cryptocurrencies, including Bitcoin and Ethereum. Although holding was initially seen as a 'gray area' in the early stages, current policies have shifted to zero tolerance. Cross-border transactions are more easily perceived as illegal fund transfers, triggering anti-money laundering (AML) reviews. Meanwhile, Hong Kong, as a special administrative region, maintains a relatively relaxed environment, supporting regulated cryptocurrency trading, but mainland residents should carefully comply with cross-border rules. These regulatory measures aim to protect the stability of the financial system but have also increased the difficulty of withdrawals.
Causes of Withdrawal Freezing and Common Issues
Bank card freezing usually stems from unclear sources of funds or suspected illegal activities. The funds from trading partners are marked as 'dirty money' (such as related to fraud or gambling), or the trading frequency is misjudged as money laundering.
Question:
OTC/P2P trading risks: When selling USDT and other stablecoins through WeChat, Alipay, or C2C platforms on exchanges, the buyer's source of funds is opaque, which can easily lead to the recipient's account being frozen by law enforcement. Unfreezing requires proof, the process is lengthy and may involve investigation.
High transaction thresholds: Single or cumulative amounts exceeding a certain threshold (e.g., 500,000 yuan) are likely to trigger bank reporting obligations, and combined with cryptocurrency backgrounds, are more likely to be viewed as unusual.
Tax and capital controls: The annual personal foreign exchange limit is 50,000 USD; if withdrawals exceed this, the source may need to be declared. Non-compliant operations may lead to tax accountability.
Technical and operational risks: Using VPNs to access restricted exchanges may expose IP addresses, increasing the risk of account bans.
So how to solve this:
Methods for safe withdrawal realization:
Based on the current regulatory environment, the following methods prioritize compliant platforms, overseas accounts, and intermediary tools. All methods require self-verification of the latest policy changes and small batch testing.
Withdraw funds through compliant overseas exchanges to overseas bank accounts
Steps: Register on cryptocurrency-friendly platforms like Kraken, Bitfinex, or HashKey (overseas KYC required, may use Hong Kong information). Convert cryptocurrencies to USD or HKD, and directly wire to an overseas bank account (e.g., HSBC or Standard Chartered in Hong Kong). Subsequently, use tools like Wise or Panda Remit to transfer back to mainland bank cards or Alipay.
Advantages: Clear fund path, banks regard it as legal remittance, avoiding OTC dirty money risks. Platforms like Kraken support arrival within 24 hours.
Disadvantages: Need to open an overseas account (e.g., Hong Kong card, can be done through mainland witnessing or lawyer certification). Transaction fees are about 0.3%-1%, plus exchange losses.
Applicable scenarios: Large withdrawals (e.g., 10 million). Test small amounts (e.g., 10,000) to confirm no freezing.
Example: Use HashKey to sell USDT, withdraw to a Hong Kong account, then transfer back to the mainland. Related discussions indicate that this path remains effective in 2025 but requires monitoring of policies.
Utilizing third-party payments and electronic wallets (e.g., BiyaPay or Victory Securities)
Steps: Download the BiyaPay App (holds a US/Canada MSB license), withdraw USDT from the exchange to its wallet, and exchange 1:1 for USD/HKD and other fiat currencies. Withdraw to Wise or Singapore OCBC accounts, and finally transfer back to mainland Alipay/WeChat. Victory Securities is similar, supporting online account opening in the mainland and large USDT withdrawals.
Advantages: B2C model ensures compliance, no need for OTC counterparts. Supports US and Hong Kong stock investment, realizing capital appreciation. Low fees (0.3%), T+0 settlement.
Disadvantages: Need to open an account with a mainland ID card, initial verification takes time. Annual limits depend on the scenario (e.g., Alipay flash collection limit of 600,000 yuan).
Applicable scenarios: Medium withdrawals, avoiding direct bank exposure. User feedback indicates that this tool effectively avoids freezing.
Alipay/WeChat cross-border payment channels
Steps: Remit from overseas accounts to Alipay 'Flash Collection' or WeChat 'Micro Remittance' through intermediaries like Panda Remit, Wise, or Remitly. Choose 'salary' or 'living expenses' categories, with annual limits of up to 600,000 yuan, no additional proof required.
Advantages: Simple operation, funds go directly into the balance or linked card. No need for physical overseas travel.
Disadvantages: Single transaction limit of 50,000 yuan, not suitable for very large amounts. Must ensure the legality of upstream funds.
Applicable scenarios: Small batch withdrawals. Combine the above methods to transfer cryptocurrency gains.
Virtual card or U-card consumption realization
Steps: Use virtual cards like Wasabi Card, recharge USDT, then link to Alipay/WeChat for spending, or swipe on overseas platforms (like Apple Pay). Indirect realization through daily expenses.
Advantages: No direct withdrawal, avoiding freezing. Supports global consumption scenarios.
Disadvantages: Not direct realization, higher fees (about 1-2%). Not suitable for large amounts, with lower limits.
Applicable scenarios: Short-term fund usage, non-cash needs.
Open a bank account in Georgia or other cryptocurrency-friendly countries
Steps: Use China's visa-free policy to open a bank card in Georgia. Withdraw cryptocurrency through Kraken to that account, then transfer back to the mainland.
Advantages: Friendly at the national level, easy to open accounts. Combine with travel, low cost.
Disadvantages: Need to physically go abroad, may need to prove source when transferring back.
Applicable scenarios: Backup path, suitable for users with overseas plans.
Precautions and Potential Risks
Batch operations: Avoid one-time large withdrawals (e.g., 10 million), it is recommended to withdraw in batches of 200,000 to 500,000, with intervals of several weeks while monitoring the account.
Tax compliance: Withdrawals are regarded as investment income, and personal income tax (20% rate) must be declared. Unexplained sources of large funds may trigger tax authority investigations.
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