In today's digital age, OTC transactions have become the first choice for many investors, but the security and legality of them have always attracted much attention. This article will explore the security and legality of OTC transactions in depth, and take you to unveil the mystery of this investment field.

1. The basic concept of OTC transactions

OTC transactions refer to transactions between the two parties directly through an electronic trading platform, rather than through a central exchange. This trading method is efficient and convenient, attracting more and more investors to participate. However, due to the lack of supervision, OTC transactions also have certain risks.

2. Security analysis of OTC transactions

In OTC transactions, security has always been the focus of investors. Compared with traditional exchanges, OTC transactions are more risky because they lack supervision from regulators. Although some well-known trading platforms will take certain security measures, such as multiple verifications and fund custody, there is still a black and gray industrial chain. When investors conduct OTC transactions, they must choose a formal and reliable trading platform to reduce risks.

3. Discussion on the legality of OTC transactions

Regarding the legality of OTC transactions, different countries have different regulatory policies. Some countries regard it as a legal trading method, while others are cautious about it. In China, regulatory authorities are cautious about OTC transactions such as encrypted digital currencies and have strengthened supervision to prevent financial risks. When choosing to participate in OTC transactions, investors must understand local regulatory policies to avoid violating laws and regulations.

4. How to ensure the security and legality of OTC transactions

In order to ensure the security and legality of OTC transactions, investors can take the following measures: First, choose a formal trading platform to ensure that the platform has the corresponding regulatory qualifications; second, strengthen the protection of personal information and funds to avoid leaking personal privacy and property safety; finally, pay attention to changes in regulatory policies regularly, adjust investment strategies in a timely manner, and reduce risks.

5. Conclusion

In summary, OTC over-the-counter transactions, as an emerging trading method, have certain risks, but also provide more opportunities for investors. When participating in OTC transactions, investors must be cautious, choose a formal trading platform, understand regulatory policies, and protect personal information and funds. Only under the premise of ensuring security and legality can investors better enjoy the benefits of investment. OTCAI transactions, safe and legal, and cautious investment can make you rich.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

As the saying goes, if you are in the arena, you will get hurt. This sentence is also applicable in the currency circle. Investors who often trade in the currency circle must have heard of over-the-counter transactions, but generally everyone will trade in the exchange, and few investors will choose over-the-counter transactions, because the risk of retail investors doing over-the-counter transactions is still relatively high, and there will be more routines, and you may be deceived if you are not careful, so if there are investors who want to do OTC over-the-counter transactions, they must be careful. Back to the topic, is it safe to receive money in OTC over-the-counter transactions? Many investors want to know whether over-the-counter transactions are legal? Let the editor of the currency circle tell you about it.

 Is it safe to receive money in OTC over-the-counter transactions?

It is not safe to receive money in OTC over-the-counter transactions because there are many scammers now.

1. After the scammer places an order on the platform, if he finds that your mobile phone number is revealed in the payment method (many people’s WeChat and Alipay are mobile phone numbers), he will immediately click on the payment, and then immediately send you a fake bank arrival text message to deceive you to release the currency.

If there is no mobile phone number, he will say, this is my wife's account, I asked my wife to transfer the money to you, leave me a phone number, I will give it to my wife. If you leave it, you will receive a fake arrival SMS in a few minutes, and then the scammer will click on the payment.

In this process, the scammer will intentionally or unintentionally reveal in the order chat that he is not short of money. And after the first payment, he will immediately ask you if there is any more, I want more. Let you feel secretly happy, paralyzed, and then fall into the chain trap.

2. "Please pay on my behalf"

Some scammers pay with Alipay, and then he will send you a picture of "Please pay 5000 on my behalf" from Alipay. If you don't look carefully, at first glance, the pictures are similar, and it is easy to be deceived. There are also scammers, Alipay QR code directly limits the transfer of 50,000 yuan by scanning (the QR code picture will show 50,000 yuan), but he sells you 5,000 yuan of coins.

3. Photo-editing fraud

Send a fake bank receipt in the order. The picture was fake at first, but now it has become perfect. So you must log in to your bank account to see if the money has arrived. SMS is unreliable anyway. It is more reliable to download a mobile bank.

 Is OTC trading legal?

Cryptocurrency has become a trading choice for more and more people due to its decentralization, anonymity and easy cashability. The 2013 "Notice on Preventing Bitcoin Risks" and the 2017 "Notice on Preventing Token Issuance and Financing Risks" pointed out the trading risks of cryptocurrencies such as Bitcoin, and at the same time denied its legal currency status and prohibited its circulation as currency transactions in the market. However, my country's existing laws and administrative regulations do not prohibit the private holding and legal circulation of cryptocurrencies. In the field of private rights, it is allowed if it is not prohibited by law. More and more cases have also affirmed the legal trading of cryptocurrencies between individuals. Therefore, for OTC traders who make a profit by buying at low prices and selling at high prices, their normal cryptocurrency trading activities are generally not restricted by law, nor do they involve criminal crimes such as money laundering, illegal operations, theft, fraud, and pyramid schemes.

However, the anonymity of cryptocurrency is being exploited by more and more lawless elements, and it has gradually become a natural channel for illegal crimes such as money laundering. OTC transactions have naturally become a key area of police attention. There was a precedent of freezing cards in March this year. In June, the freezing wave broke out in Dongguan. Thousands of bank cards involved in OTC transactions were frozen, and OTC traders suffered heavy losses.

For OTC traders, even if they are conducting normal trading activities in the legal field, if they fail to fulfill their reasonable duty of care and provide channels for the inflow and outflow of black money in disguise, they may constitute the crime of "concealing and concealing criminal proceeds and criminal proceeds", which is also the only crime that OTC traders will be involved in.

To sum up, this is the answer from the editor of Coin Circle to questions such as whether it is safe to collect money from OTC transactions and whether OTC transactions are legal. I hope that this introduction to OTC transactions by the editor of Coin Circle can help investors have a more comprehensive and in-depth understanding of OTC transactions. The editor of Coin Circle would like to remind investors that although OTC transactions are a legal way of trading, you still need to pay attention to the risks involved. As the saying goes, it is better to be safe than sorry. Scammers like to use the greed in our human nature to break our defenses. The editor of Coin Circle recommends that it is safer and more reliable to trade at exchanges, and it is less likely to cause accidents.