In its continued efforts in stopping crypto fraud completely, the Chinese police have captured more than 1,000 persons suspected to use cryptocurrency for illicit money transactions.
China Crypto Crackdown Continues
According to a statement issued by China’s public ministry of public security yesterday, law enforcement authorities arrested a suspected criminal group known to run illicit financial operations. However, they have escaped the alert of the police because they have been performing their money laundering schemes via various digital currencies.
However, by applying its card freeze method, the agency caught these criminals and stopped their flow of funds. Since early last year, China authorities have been taking strict actions to stop illicit financial transactions in the country with a focus on telecommunications and the digital currency space. Hence, banks started freezing crypto-related accounts and cards, with more than 75% of Chinese bitcoin miners losing their accounts and cards during this period which lasted till late last year.
This latest news is what the ministry of public security has termed “the fifth set of centralized network round-ups” with a significant focus on those digital currencies for illegal financial transactions. This coordinated effort resulted in capturing over 1,000 suspects and the dissolution of 175 criminal gangs. However, it also highlights the government’s concern regarding the use of this digital asset for criminal activities.
China remains a hostile environment for the digital currency industry. For example, as previously reported on Tokenhell, a leading social chat site, Weibo (under the government’s directives) deactivated the Weibo accounts of famous crypto influencers.
Following the ban last month in the country, three top crypto servicing firms revealed that they would cease to offer any crypto services to Chinese people. This same last month, China’s state council revealed that bitcoin mining is now against the law in the country. As reported on Tokenhell yesterday, Inner Mongolia and Xinjiang, both famous bitcoin mining hubs, have stopped all mining activities in their provinces.
Also, Huobi, OKEx, and Binance (the top three crypto exchanges in china) are no longer appearing on the search results of the major search and social sites (Baidu and Weibo, respectively). An indication that the authority’s crypto clampdown efforts aren’t limited to bitcoin miners alone. In a related development, another china province, the Qinghai province, has also ordered bitcoin miners to stop operations and mandated companies to stop enabling crypto-related miners with their basic needs (power and land). After visiting the province by China’s President Xi Jinping, who reiterated his administration’s commitment to the clean environment initiative, the provincial authorities issued these new directives.
Other Countries Are Embracing Bitcoin
Despite china’s hostility towards bitcoin and the cryptocurrency industry, there are other countries already embracing bitcoin. One country (El Salvador) has made it a legal tender in the country, while others consider following the same path. Even el Salvador’s Wikipedia page has been updated to reflect this new change. Salvadorian legal reps have also approved citizenship for any individual who invests at least three bitcoins into their economy.