Is it legal and safe to sell U at exchange shops in Hong Kong?

When it comes to trading digital assets, many people mention going to Hong Kong. Those who say this often have never applied for a travel permit and simply believe that going to Hong Kong solves everything based on hearsay.

Is it really that simple?

Let's review the ways to sell digital assets in Hong Kong. First, let's not even mention Bitcoin ATMs, as they are inconvenient and charge a 10% fee.

For small amounts, there are exchange shops that directly convert to Hong Kong dollars in cash or transfer to you. These are licensed exchange shops, and if the amount exceeds a certain limit, they will require you to complete KYC verification. You also need to have a Hong Kong phone number and address; it's not as simple as just buying a VoIP phone card.

This is essentially an OTC method, which cannot be considered compliant. If you want to use this method, why do you need to go to Hong Kong? You can do it anywhere.

The second method is to register as a user on a licensed exchange, such as Hashkey or Coinbase. Everyone tells you that you can safely and legally withdraw U in large amounts through these exchanges, but no beginners have actually practiced this. Why?

Registering with these overseas exchanges requires identification; it's not something you can solve just by getting an overseas bank card. Those who tell you to go to Hong Kong to open an account for safe withdrawals are merely card brokers.

In reality, you need to set up an overseas bank account. This is not a problem; you can pay a bit of a brokerage fee, and with some research, you can execute it for free. How do you obtain the identity information for your exchange? Do you also need to go through immigration?

Even if you spend a lot of money to obtain overseas identity, and then you think you can withdraw funds, right? If you come in and want to withdraw $1 million, yes, the exchange can send it to you, and this is indeed safe funds.

However, under the common financial regulatory framework overseas, exchanges and banks are regulated separately.

In other words, banks have independent KYC and anti-money laundering regulations. Even if the money is transferred from a licensed exchange, it does not exempt or reduce the bank's own anti-money laundering responsibilities. For small amounts, it doesn't matter; whether you are on Hashkey or Coinbase, unfortunately, these exchanges do not have the capacity for large withdrawals.

We have several cases where over $1 million was withdrawn from Hashkey, only to be politely notified by the bank, "Sorry, sir, we can no longer serve you. Please transfer your money and close your bank account within 14 days." Where are you supposed to transfer it to? You don't have a receiving account.

Critics lack basic financial knowledge about anti-money laundering.

Even more, some novice critics say, "If it were me, I would use U cards." This is true; U cards are indeed a tool for novice retail investors to withdraw funds, but they misunderstand the term "large amount." It's like a clown in a fairy tale wondering if the emperor farms with a golden hoe.

You withdraw $3,000 a day, $90,000 a month, $1 million a year, $10 million in ten years?

Are you going to the ATM every day for ten years?

It's really laughable.

Today, let me show you a case of a licensed exchange shop in Hong Kong laundering money:

In 2023, a person exchanged over 70,000 yuan at a registered exchange shop in Hong Kong to their family member's card, only to have it frozen by an uncle in Sichuan this January, with the reason being gambling funds.

All evidence and materials are present, and it is a legitimate exchange, but it cannot be resolved.

The safety of all your exchange activities actually depends on the source of your funds, and is unrelated to the methods or locations.

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