As the crypto market is achieving popularity with every passing day, there comes a piece of news that changed the entire dynamics of the market. Yes, according to the reports, the police of China has arrested around 1,100 people and accused them of still using cryptocurrency. Under this suspicion, thousands number of people got arrested. The officials stated that even though the country has banned the usage of these virtual currencies, some people didn’t stop using them and as a result are facing consequences. Let us add, that using any kind of digital currency in China will come under the criminal act.
Recently, China announced that it will ban the usage of bitcoin and other associated currencies. The state made this decision after concerning about the climate conditions as the harmful effects of finance mining was highly affecting it. After that, China declared a crackdown on bitcoin trading and mining which brought havoc in the worldwide spread crypto market. Now, as everyone is aware of the fact that to mine a bitcoin or Binance coin, a huge amount of electricity is consumed which further affects the environment badly. Regarding the same, China shut down the usage of these coins.
Criminal Groups Arrested:
However, after some days of this crackdown, the country arrested a total of 1,100 people involved in crypto money laundering. More than 170 criminal groups were caught by the officials of the country and were detained immediately. These said accused were utilizing digital currencies to launder money and thus were arrested. As per the statements of the officials, these money launderers were reportedly giving around 1.5 to 5% commission to their clients. They were exchanging money with these Binance coins by going against the laws of China.
Payment and Clearing Association of China stated that these kinds of cases are going up and are expected to increase in the coming times as well. Thus, taking strict actions against these money launderers is a must. The association mentioned that using cryptocurrencies have gone easier due to modern technologies and are a lot convenient as well. Now, this has made the people easily cross-border money laundering.
According to the associations, the rates of crimes using cryptocurrencies have spiked a lot. Talking about the sites that are involved with these frauds, they are around 13%. These sites entirely support the digital coins over the national ones and due to the blockchain technology on which these coins are based, it has gotten difficult for the authorities to track down these kinds of money laundering.