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0 CommentsAs the China Ministry of Public Security said, the police have arrested more than 1,100 suspects of using cryptocurrencies for illegal activities, like laundering money and telecom frauds. The Chinese authorities stated they have crackdown more than 170 gangs responsible for using crypto for criminal purposes.
The arrests follow China has stepped up efforts to suppress cryptocurrency mining and trading. Last month, the Chinese authorities banned crypto-related financial and payment services, while the State Council of China vowed to toughen up Bitcoin regulations.
To convert illegal proceeds in virtual currencies, the money launderers charged a commission of 1.5% to 5%, the ministry said on his official Wechat account. As well as China Payment and Clearing Association stated on Wednesday that the number of crimes involving virtual currencies rises.
As cryptocurrencies are anonymous, convenient, and global, “they have increasingly become an important channel for cross-border money laundering,” said in a statement of the association.
According to the association, now cryptocurrencies have become a popular way of payment for illegal gambling. About 13% of gambling sites allow payments in digital currencies, and blockchain technology made it more difficult for police to track the money.
Recently the Chinese government in Xinjiang had shut down some Bitcoin mining firms, and Zhundong Economic-Technological Development Park had halted for the same reason. People in the park were mainly crypto miners and stopped their operations.
