China arrests 1,100 suspects in crackdown on crypto-related money laundering
10 June, 2021
Police found in China arrested a lot more than 1,100 persons suspected of using cryptocurrencies to launder against the law proceeds from telephone and Internet scams in a recently available crackdown, the Ministry of People Security said.
The arrests came as authorities in China intensify their crackdown on cryptocurrency trading. Previous month, three sector bodies banned crypto-related personal and payment solutions, and the Point out Council, China's Cabinet, vowed to clamp down on bitcoin mining and trading.
The general public security ministry said that by Wednesday afternoon (Jun 9) police had busted a lot more than 170 criminal groups involved in using cryptocurrencies to launder money.
The amount of money launderers charged their criminal clients a commission of just one 1.5 % to 5 % to convert illegitimate proceeds into virtual currencies via crypto exchanges, the ministry explained via its official Wechat bank account.
China's Payment & Clearing Association stated on Wednesday that the number of crimes involving the utilization of virtual currencies is on the rise.
Because cryptocurrencies are anonymous, convenient and global in nature, "they have increasingly become a crucial channel for cross-border funds laundering", the association said in a statement.
Cryptocurrencies have already become a popular method of payment in illegal gambling activities. Nearly 13 % of gambling sites support the consumption of virtual currencies, and blockchain technology features made it more challenging for authorities to track the money, in line with the association.
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