China arrested over 1,100 individuals for utilizing digital currency to launder illegal funds from telephone and Internet scams in a current crackdown.
China Increased Cryptocurrency Crackdown
The arrests came as authorities in China strengthen their crackdown on digital currency transactions.
Last month, three business organizations prohibited crypto-related financial and payment facilities. China’s Cabinet, the State Council, declared to especially crackdown on bitcoin mining and trading.
By Wednesday afternoon, the ministry announced that authorities had arrested over 170 criminal groups in utilizing cryptocurrencies for money laundering.
The criminals involved in money laundering charged their clients a commission. These clients need to pay at least between 1.5 percent to 5 percent; to switch illegal proceeds into virtual currencies via crypto exchanges, the ministry announced.
China’s Payment & Clearing Association said that the number of crimes involving virtual currencies is on the rise. Because cryptocurrencies are anonymous, convenient, and global, “they have increasingly become an important channel for cross-border money laundering,” the association mentioned in a statement.
Cryptocurrencies have already become a popular means of payment in illegal gambling activities. Furthermore, nearly 13 percent of gambling sites support the use of virtual currencies. Thus, blockchain technology has made it further complicated for authorities to track down the funds, as per the authorities.
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