The post China’s Crypto Crackdown Failing? Billions in Illegal Transactions Exposed appeared on BitcoinEthereumNews.com.

Chinese authorities uncover billions in illicit crypto despite a nationwide ban. Underground banks and illegal exchanges flourish as China’s crypto crackdown falters. About $86 billion of crypto flowed into China in the 12 months through June 2023. Recent developments in China suggest the continued use of cryptocurrencies despite an existing ban by the government. Multiple raids by the Chinese police uncovered the use of cryptocurrencies for illicit transactions totaling billions of dollars. A Bloomberg report revealed that in May, the police in China discovered an underground bank linked to 13.8 billion yuan, or $1.9 billion worth, of illegal transfers. They uncovered a gang implicated in the unauthorized conversion of about 2 billion yuan, and multiple unlawful money exchanges involving transactions worth over 1 billion yuan. The outcome of these discoveries suggests a significant presence of Chinese traders actively participating in the cryptocurrency market. Furthermore, the police located the suspects around Beijing, the northeastern province of Jilin, and Chengdu City in the southwest, raising the possibility of a widespread practice across the entire country. It is worth noting that it has been two years since the Chinese authorities imposed a ban on cryptocurrency transactions within the country’s borders. The government cited money laundering, currency outflows, and environmental harm from energy-intensive Bitcoin mining as the reasons behind its crypto ban. However, there is a belief that Chinese citizens are still involved with digital assets. While many use it as an alternative investment amid falling property prices, others utilize crypto as a channel for circumventing overseas transfer limits. In a statement, Chengyi Ong, APAC policy head at Chainalysis Inc., noted that a significant amount of crypto activity remains in China. According to Ong, this may be a result of the lack of strict enforcement of the ban. Nevertheless, he acknowledged that the decentralized…

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Filed under: News - @ May 25, 2024 3:06 pm