Dogecoin Note Sparks Bank Freeze in China as Banks Clamp Down on Virtual Currency Transactions

COINOTAG reports that a China Construction Bank branch flagged a transfer labeled “Dogecoin this week,” triggering a compliance review and a temporary freeze on Ms. Yu and her husband’s accounts. The incident underscores heightened scrutiny of virtual currency activity.

To lift the restrictions, staff requested marriage documents, the husband’s bank statements, and a handwritten commitment stating the transfers were unrelated to virtual currency. A no receipts, no payments status remains pending review.

A Dalian branch representative warned that any link to virtual currency activity could sustain the hold. Bank statements alone may not suffice as proof, risking continued restrictions or account closure.

On December 5, a risk warning co-signed by the China Internet Finance Association and seven other associations cautioned members to avoid domestic virtual currency markets and asset-token trading, urging readers to assess risk and steer clear of illegal activity.