Chinese banks are freezing customer accounts after routine transfers included words such as “Dogecoin” or “USDT” in the memo field, according to multiple social media reports.
Users claim that once flagged under banks’ virtual currency risk controls, accounts are locked and access to funds can remain restricted for weeks or indefinitely.
A Techub.info report cited two China Construction Bank customers whose accounts were frozen after a 250 yuan transfer included the note “Dogecoin this week,” triggering the bank’s automated monitoring system.
On social platform Rednote, users have warned others never to reference Bitcoin, USDT or memecoins in transaction descriptions, saying the only path to unfreezing accounts involves in-person meetings, written explanations and lengthy manual reviews.
The crackdown aligns with Beijing’s broader tightening of digital asset oversight, including a February 6 pledge to strengthen restrictions on virtual currencies and ban unauthorised offshore issuance of yuan-pegged stablecoins.
In a joint statement reported by Reuters, the People’s Bank of China and seven other agencies reiterated that virtual currencies do not have the legal status of money and that related business activities constitute “illegal financial activities.”
While authorities continue exploring regulated real-world asset tokenisation frameworks, regulators have made clear that financial institutions must cease providing services to crypto-related businesses, further widening the divide between traditional banking and digital assets in China.
At the time of reporting, Dogecoin price was $0.09276.