Cross-Border Payment Gateway and Virtual Money Withdrawals: Legal Risk Analysis

Recently, the "Cross-border Payment Link" service between the mainland and Hong Kong has officially launched, providing convenient small remittance services for residents of both regions. This new service has sparked some discussions and questions regarding the withdrawal of Virtual Money. This article will provide a brief analysis on this matter.

Introduction to Cross-Border Payment Channels

Cross-border Payment Pass is a service that connects the "Online Payment Interbank Clearing System" in mainland China with the "Faster Payments" system in Hong Kong. It is mainly aimed at individual users in both regions. For northbound remittances ( from Hong Kong to mainland China ), a Hong Kong identity is required, while for southbound remittances ( from mainland China to Hong Kong ), a mainland identity is required.

Currently, the daily remittance limit is 10,000 HKD, and the annual limit is 200,000 HKD. Mainland residents are still subject to a foreign exchange purchase limit of 50,000 USD per year when remitting to Hong Kong. The service is free during the initial phase, but it may expand to more application scenarios and start charging in the future.

Many banks in mainland China and Hong Kong have launched this service. Actual user experience shows that cross-border transfers can be completed in seconds without the need for additional foreign exchange.

Hong Kong Virtual Money Withdrawal Methods

Currently, there are three main withdrawal models for Virtual Money in Hong Kong:

1. Offline OTC stores: You can directly exchange mainstream Virtual Money for Hong Kong dollars, supporting cash or bank transfer.

2. Licensed exchanges: Some professional trading platforms can conduct Virtual Money transactions, but an account must be opened. Purely local residents usually cannot open an account.

3. Securities companies: Some securities companies provide related services, but there are also restrictions on opening accounts for pure mainland residents.

For mainland residents without a Hong Kong work visa or residence proof, it seems that currently the only way to withdraw funds is through OTC stores.

Legal Risks of Using Cross-Border Payment Channels for Withdrawals

Although cross-border payment channels facilitate the cross-border flow of funds, there are still legal risks associated with the withdrawal of Virtual Money.

1. Northward transfer ( from Hong Kong to the mainland ) requires Hong Kong resident identity. Mainland residents, even if they have a Hong Kong bank card, find it difficult to operate.

2. Transferring funds through Hong Kong residents may violate relevant regulations. The applicable scenarios for cross-border payment mainly include tuition payments for studying abroad, public utility payments, medical services, salary payments, and so on.

3. Participating institutions must fulfill anti-money laundering and other compliance requirements, strengthening the monitoring of suspicious transactions. Although there may not be strict reviews of business backgrounds at present, it is not recommended from a compliance perspective to be used for Virtual Money related transactions.

Conclusion

With a securities company approved to provide virtual asset trading services in Hong Kong, traditional financial institutions are gradually entering the virtual money field. This trend may bring new development opportunities to the virtual money market, but it also reminds us to closely monitor changes in relevant laws and regulations and to participate in related activities with caution and compliance.