China’s cryptocurrency crackdown grows, with 1100 people behind bars for money laundering

  • Police have leveled money-laundering allegations on over 1100 people, who had been arrested yesterday.
  • China isn’t the one nation that has pushed again towards crypto in latest instances.
  • Other than environmental causes, money-laundering is likely one of the major issues towards crypto operations.

China’s crackdown on crypto-related operations appears to be intensifying. The nation’s Ministry of Public Security introduced yesterday that over 1100 people have been arrested over suspicions of money laundering utilizing

According to China’s public safety ministry, the police had caught over 170 prison teams that had been laundering money by way of cryptocurrencies. The launderers
reportedly charged 1.5% to five% fee for changing unlawful money into cryptocurrencies through the use of exchanges, mentioned experiences.

The timing of the arrests is essential, as they got here lower than three weeks after the nation’s central financial institution introduced a crackdown on cryptocurrency mining, exchanges, and extra. Three trade our bodies in China had additionally banned crypto-related companies. In addition, the federal government in China’s Inner Mongolia area, which is a hub for crypto mining, had created a public helpline for residents to report
crypto mining operations within the space too.
The arrests might persuade some customers who thought China’s crackdown on the trade received’t final. Last month’s crackdowns had led many to recall the same ban that China had introduced again in 2017. Since the nation turned one of many largest crypto mining international locations regardless of such efforts, many mentioned that this yr’s strikes could not quantity to a lot both.

However, China’s 2021 crackdown isn’t a lone effort. It provides to what might be referred to as a world pushback towards the crypto trade that began over the previous six months or so. The trade had seen a interval of growth over the previous yr, particularly after unprecedented lockdowns worldwide made the inventory markets unstable.

India and crypto: The regulatory hurdles

Just just like the Chinese authorities, India too is contemplating laws round cryptocurrency. The nation is predicted to come back up with a distinction between personal and central financial institution digital currencies, and
may ban any digital foreign money that qualifies underneath its definition of personal currencies. A invoice for the identical was anticipated within the Budget session of the Parliament that was held in March.


In the invoice, India is predicted to “create a facilitative framework for creation of the official digital foreign money to be issued by the Reserve Bank of India (RBI)”. It would search to “prohibit all personal cryptocurrencies” in India and would lay the framework for the central financial institution digital foreign money (CBDC) to be issued by the RBI.

Concerns across the crypto growth

But international locations apart, public personalities like Elon Musk have expressed concern in regards to the quantity of energy consumed by crypto mining. A
project by the University of Cambridge, referred to as the Cambridge Bitcoin Electricity Consumption Index, discovered that Bitcoin mining consumes 112.57 terawatt-hours of vitality yearly, which is greater than the overall electrical energy consumption of some international locations.

Tesla, which had laid out plans to just accept Bitcoin funds for its automobiles, went again on the promise final month, citing environmental issues. The firm has invested $1.5 billion in Bitcoin too, which it plans to carry on to, until extra environmentally sound means are created.

Even international locations which have come ahead as pro-crypto have these issues. El Salvador, which turned the primary nation to make Bitcoin authorized tender, yesterday, is trying for environmentally sound means too.

“I’ve simply instructed the president of @LaGeoSV (our state-owned geothermal electrical firm), to place up a plan to supply amenities for #Bitcoin mining with very low cost, 100% clear, 100% renewable, 0 emissions vitality from our volcanos,” Nayib Bukele, President of El Salvador,
tweeted yesterday.

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About the Author: Daniel