Many newcomers have recently consulted Da Yi, asking if there is still an opportunity to become an OTC coin merchant, whether they can earn some pocket money to support themselves daily. In response to these questions, the Da Yi team of lawyers has organized the information; you can see how many you can handle on your own while understanding the hidden legal risks!
These questions will gradually be written into articles by Da Yi to help more newbies recognize the true face of this industry: high risk, prone to pitfalls, and how to effectively avoid the traps within.
Current situation of the OTC industry: high risk, low profit; do newcomers still have a chance to turn things around?
The coin merchant industry has never been an easy profession. Da Yi has mentioned before: high risk, not low thresholds, and thin profits; it doesn't look like a wise investment choice at all. If you have some capital on hand, it's better to buy an automatic noodle cutting machine, rent a small stall in your hometown's vegetable market to sell noodles, and easily crush those small vendors relying on skills. Why come to this high-pressure industry to 'add fuel to the fire'?
In fact, Da Yi withdrew from the role of exchange coin merchant as early as 2020 because this business model is fundamentally flawed and hard to justify. But now there are still people charging tens of thousands in tuition to teach others to be coin merchants, simply cutting leeks to recruit apprentices.
You may not believe it, but why are there still so many OTC merchants in exchanges? Da Yi will 'offend peers' in this article: line up all the OTC merchants from exchanges, clear out every other one, and those remaining are just lucky to escape; there will never be any innocent ones.
Don’t understand what this means? Look at the picture: can you immediately tell which one is the 'well-behaved, hardworking, self-disciplined, impoverished female college student' doing part-time work?
In such an environment, it's impossible to find 'pure' college students doing part-time jobs. You work hard as a waiter earning 3,500 a month, while others earn 3,500 in a few minutes; can you still stick to your principles?
It’s just like in the OTC coin merchant circle, everyone is making money like crazy. You stay up late running orders, earning 300 a day, while others easily make 300,000 a day; your mentality has already collapsed.
So what resources and costs need to be invested by an OTC coin merchant? First, you need to have an exchange merchant account, with a margin between 10,000 to 15,000 USDT, which is about 100,000 RMB, plus at least 100,000 in liquidity, which already amounts to 200,000 in startup capital.
Then you need to prepare multiple bank accounts, calculating a daily limit of 500,000, and set up three accounts each for Alipay and WeChat; only then can you barely start operations. Many newbies don't even know how to apply for a coin merchant account, resulting in direct rejection by the platform, and they have to find someone to guarantee, which adds another 30,000 to the costs.
Legal Risk Section
1. What are the criminal offenses most easily encountered in the digital currency-related industry?
2. What specific behaviors are included in 'Assisting Criminal Activities'? What is the usual sentence?
3. What are the common manifestations of 'Concealing and Hiding Criminal Proceeds'? What are the sentencing periods?
4. In the OTC industry, what behaviors will be classified as 'illegal business operations'? What is the typical sentence?
5. What are the main regulatory documents currently governing the coin circle?
6. Summarize the current legal status of the OTC industry in one sentence.
7. What is the root cause of frequent legal issues in the coin merchant industry?
8. How to understand the phrase 'Buying coins is not illegal, but receiving dirty money will definitely lead to trouble'?
Technical Basics
9. What categories are there for digital wallets?
10. What are the advantages and disadvantages of exchange wallets and decentralized wallets?
11. How to use digital wallets correctly and safely?
12. What risk points should be avoided when using wallets?
13. What are the common reasons for wallet asset theft?
14. What is 'energy leasing' in the TRON public chain?
15. How to use energy leasing to complete transfer operations?
16. What are the pros and cons of energy leasing?
17. How to determine if a USDT is 'black USDT'?
18. What does 'marked USDT' refer to?
19. What are some commonly used on-chain security query tools?
20. How to check transaction records through a public chain browser?
21. How to set up an 'observation wallet'?
22. How to check the asset quantity in the other party's wallet?
23. What is the process for setting up an observation wallet?
24. How to conduct cross-chain exchanges of USDT across different chains?
25. How to safely deposit and withdraw through exchanges?
26. What are the process and risk control points for over-the-counter Bitcoin trading?
Professional Knowledge Section
27. What is the complete risk control process for cash transactions?
28. What is the risk control operation process for transfer transactions?
29. How to avoid issues with bank cards being controlled?
30. How to prepare materials to unfreeze a bank card after it is frozen?
31. What to do after a bank card is judicially frozen?
32. How to report a trading dispute reasonably?
33. How to increase the daily collection limit and efficiency?
34. How to quickly identify 'black and gray funds'?
35. What are the common types of black and gray funds?
36. What is the complete process for handling a judicially frozen card?
37. How to control risks on-site during cash transactions?
38. How should an online trading security risk control system be established?
39. How to avoid getting involved in fraud risk control lists?
40. What are the real reasons for being restricted by banks?
Business Basics Section
41. According to trading methods, what are the two categories of U merchants?
42. What is the definition of on-site U merchants and what are their advantages and disadvantages?
43. What is the definition of off-site U merchants and how do their pros and cons compare?
44. What standards do U merchants refer to when pricing transactions?
45. How are the purchase price and selling price formed?
46. How is pricing generally determined in cash transactions?
47. Why do bank card freezing incidents occur?
48. What is the essential difference between 'judicial card freezing' and 'anti-fraud risk control'?
49. What are the categories of Class 1, Class 2, and Class 3 bank cards?
50. What are the respective advantages and disadvantages of cash transactions and transfer transactions?
51. What are the main risk points currently facing transactions?
52. What specific forms does over-the-counter trading take?
53. Where are the current mainstream U trading markets in China?
54. What potential risks are involved in exchanging foreign currency for USDT?
55. What are the common sources of black and gray funds?
56. How to determine whether funds are clean based on details?
57. What is the correct method for cross-border 'arbitrage' operations?
58. What are the common methods used in capital verification?
Business Improvement Section
59. How do U merchants establish their own resource networks?
60. How to distinguish the authenticity of information?
61. How to set a pricing system that fits your own situation?
62. What emergency measures should be taken after asset loss?
63. What are the most common scams in transfer transactions?
64. What is the standard process for exchanging gold for USDT?
65. What are the characteristics of U merchant markets in different regions?
66. What are the differences in the U merchant industry across countries?
67. What are the risk points and precautions for cross-border 'arbitrage'?
68. What does 'currency exchange' refer to?
69. What is the process for handling confiscated assets?
70. What should be noted when a company account receives USDT?
71. What are the precautions for businesses involving confiscated assets?
72. What key points should be noted in 'Huiwang Guarantee' operations?
73. How to identify the authenticity of project information online?
74. What details should be noted when discussing business offline?
75. What are the legal ways to conduct foreign exchange business?
76. What are the operational details for exchanging gold for USDT?
77. How to exchange electronic promissory notes for USDT?
78. What is the operational principle of the bank's risk control system?
79. How to unfreeze assets after being judicially frozen?
80. How to establish a dedicated risk control model to cope with risks in different trading scenarios?