China police arrest more than 1000 over crypto-related money laundering charges | #socialmedia


Chinese police arrested over 1,100 people suspected of using cryptocurrencies to launder illegal proceeds from telephone and internet scams in a recent crackdown, the Ministry of Public Security said. The arrests come as the Chinese Communist Party (CCP) ramped up its crackdown against Bitcoin while three major industrial bodies banned crypto-related financial and payment services. Crypto-related crimes in China have exacerbated in the recent weeks as the country continues it expand its trade internationally.

Over 170 criminal groups 

According to the Chinese Ministry of Public Security, the law enforcement had busted more than 170 criminal groups, who were all involved in the conversion of illegal money into virtual currencies via crypto exchanges. The groups charged a commission of 1.5 to 5 per cent on each conversion, the ministry added in a  Wechat statement.  Because cryptocurrencies are anonymous, convenient and global in nature, “they have increasingly become an important channel for cross-border money laundering,” the association said.

Last week, Chinese social media accounts related to cryptocurrencies were blocked over the weekend by Sina Weibo, reported Global Times. The blocked accounts had followers ranging from several thousand to several hundred thousand and featured some of the most prominent players in the virtual currency system including Trader Xiaoxia, Fat Nerds Bitcoin, Super Bitcoin and Blockchain William. Reportedly, some of the barred account owners are billionaires owing to investments in cryptocurrencies. 

The latest move over the weekend came as China continues to scrutinise the digital currency industry in order to prevent what they call systematic financial risks as well as illegal activities including money laundering. As per the report, the suspensions of accounts related to cryptocurrencies were apparently accrued out by Sina Weibo, the Chinese social media platforms. Reportedly, on searching those accounts on the platform, Sina Weibo shows that they’re blocked because they are suspected of violating relevant laws and regulations concerning the platform’s community conventions. 

With more and more people investing in the crypto trade, crimes related to virtual currencies are on the rise. According to a recent report, roughly 13 per cent of gambling websites accept cryptocurrencies and because of blockchain technology, it becomes almost impossible to track the transactions. 

Image: AP/Pixabay 





Original Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

thirty + = forty