China arrests over 1,100 suspects in crackdown on crypto-related money laundering

FILE PHOTO: A small toy figurine is seen on representations of the Bitcoin digital foreign money displayed in entrance of a picture of China’s flag in this illustration image, April 9, 2019. REUTERS/Dado Ruvic/Illustration

SHANGHAI (Reuters) – Police in China arrested over 1,100 individuals suspected of utilizing cryptocurrencies to launder unlawful proceeds from phone and Internet scams in a latest crackdown, the Ministry of Public Security mentioned.

The arrests got here as authorities in China step up their crackdown on cryptocurrency buying and selling. Last month, three business our bodies banned crypto-related monetary and cost providers, and the State Council, China’s cupboard, vowed to clamp down on bitcoin mining and buying and selling.

The public safety ministry mentioned that by Wednesday afternoon police had busted greater than 170 felony teams concerned in utilizing cryptocurrencies to launder money.

The money launderers charged their felony shoppers a fee of 1.5% to five% to transform unlawful proceeds into digital currencies through crypto exchanges, the ministry mentioned through its official Wechat account.

China’s Payment & Clearing Association mentioned on Wednesday that the variety of crimes involving using digital currencies is on the rise.

Because cryptocurrencies are nameless, handy and world in nature, “they’ve more and more turn into an vital channel for cross-border money laundering,” the affiliation mentioned in a press release.

Cryptocurrencies have already turn into a preferred technique of cost in unlawful playing actions. Nearly 13% of playing websites assist using digital currencies, and blockchain know-how has made it tougher for authorities to trace the money, in line with the affiliation.

Reporting by Samuel Shen in SHANGHAI and Alun John in HONG KONG; Editing by Simon Cameron-Moore

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