On Wednesday, the Chinese language Ministry of Public Safety mentioned that it has arrested about 1,100 people for laundering cash by way of cryptocurrencies. The announcement was posted on the Ministry’s official WeChat account, a social media app in China.
The cash launderers allegedly charged a fee of 1.5% to five% to transform prison proceeds to cryptocurrencies utilizing crypto exchanges. The Ministry didn’t present particulars over how a lot cash was laundered, nor which buying and selling platforms have been used.
The cash earned got here from illicit phone and Web scams, per the federal government physique.
The information comes amid a broader crackdown on the crypto trade in China.
China has imposed a ban on cryptocurrency buying and selling since 2017; nonetheless, in current weeks, that ban has dominated headlines as soon as once more.
Final month, three of China’s most outstanding cost establishments—the Nationwide Web Finance Affiliation of China, the China Banking Affiliation, and the Cost and Clearing Affiliation of China—unanimously backed the federal government’s stance on crypto.
“Not too long ago, cryptocurrency costs have skyrocketed and plummeted, and speculative buying and selling of cryptocurrency has rebounded, significantly infringing on the protection of individuals’s property and disrupting the traditional financial and monetary order,” the three trade our bodies mentioned in a press release.
Cryptocurrency buying and selling just isn’t the one side of the crypto trade that’s come beneath hearth in China just lately, both.
Earlier this week, China’s Qinghai Province introduced a brand new ban on mining and crypto mining extra broadly.
In response to a doc issued by the Qinghai Trade and Data Know-how Division yesterday, all mining companies within the province should shut down, and no new companies will probably be authorised.
Qinghai is the third Chinese language province to impose a ban on crypto mining, following the path beforehand laid by Xinjiang and Inside Mongolia.
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