Mainly for users in mainland China, when converting USDT (Tether) to RMB, special attention should be paid to security and compliance. Here are several common withdrawal methods along with their pros and cons.
1. Withdraw through regulated exchanges
Using compliant and regulated exchanges is one of the safest methods. Investors can exchange USDT for fiat (such as USD, EUR) at the exchange and then withdraw it to their bank account. For example, Kraken exchange supports selling USDT for euros or pounds, with transaction fees around 0.2% and relatively low withdrawal fees.
Advantages:
• Fund safety is guaranteed.
• Transaction fees are relatively low.
Disadvantages:
• Need to have an overseas bank account.
• The withdrawal process may be more complicated.
2. Use peer-to-peer (P2P) trading platforms
P2P platforms allow users to trade USDT directly with other users, converting it to RMB. For example, Binance's P2P platform offers such services.
Advantages:
• Flexible trading with relatively fast speed.
• No need for an overseas bank account.
Disadvantages:
• There is counterparty risk; carefully choose reputable trading partners.
• There is a risk of fund freezing, and compliance with platform and legal regulations is necessary.
3. Apply for an overseas bank card
Apply for overseas bank cards like Huamei Card, withdraw USDT to that card, and then withdraw cash or spend it at domestic ATMs.
Advantages:
• Avoid regulatory risks of domestic banks.
• Withdrawals and spending are quite convenient.
Disadvantages:
• Applying for and maintaining an overseas bank card may be somewhat challenging.
• May involve relatively high fees.
4. Use prepaid card services
For example, the prepaid card provided by Depay allows users to load USDT onto the card for spending or withdrawal.
Advantages:
• Can be linked to Alipay or WeChat for convenient spending.
• Avoid regulatory risks of domestic banks.
Disadvantages:
• Deposits and withdrawals may involve fees.
• Card limits and usage may be restricted.
5. Through over-the-counter (OTC) trading
Trade with trusted OTC merchants to convert USDT to RMB.
Advantages:
• Suitable for large transactions.
• Transaction speed is relatively fast.
Disadvantages:
• Carefully choose reputable merchants to avoid scams.
• There is a risk of fund freezing.
Suggestions:
• Choose compliant channels: Prioritize regulated exchanges or platforms to ensure fund safety.
• Diversify risk: Avoid withdrawing all funds through a single channel; consider using a combination of multiple methods.
• Comply with laws and regulations: Ensure all transactions comply with local legal provisions to avoid legal risks.
• Stay vigilant: Be wary of high-return temptations to avoid falling into scam traps.
