Chinese detectives arrested over 1,100 crypto traders suspected to have been using cryptocurrency to launder funds for telecommunication network fraud activities.
On June 09, The Ministry of Public Security confirmed that the authorities had cracked down on a group sect believed to be running an illegal criminal gang. In an official announcement, the security department maintained that the gang used crypto for money laundering activities to avoid law enforcement agents.
The police managed to successfully stop the flow of the funds and also apprehended the suspects through its card freeze operation.
China Accelerates Crackdown On Crypto
Since January 2020, the Chinese government has continued to implement strict measures in its efforts to combat money laundering and illegal activities throughout the country. This process has targeted the cryptocurrency sector and telecommunication industry.
These actions by the authorities have consequently led to the freeze wave with most of the local banks reportedly freezing cards linked to crypto transactions. Notably, the move had already affected more than 70% of Chinese Bitcoin miners by November 2020.
According to the Ministry of Public Security, the latest development is the “fifth round of centralized network collection” that mainly focuses on individuals using crypto for illegal activities. The investigations have resulted in the arrest of 1,100 suspects and 170 criminal gangs have been dismantled in the process.
China has continued to adopt a negative and inhospitable stance towards the crypto sector. Reports emerged that the government had pushed for the suspension of Weibo accounts belonging to popular crypto influencers. Back in May 2021, three more industry bodies insisted on the authority’s ban stating that they were not authorized to offer any crypto-related businesses or services.
In the same month, the State Council of China supposedly called for a ban of Bitcoin mining activities in the country over carbon footprint issues. Since then, reports have emerged that Xinjiang had stopped local BTC operations in the region from conducting their activities following Inner Mongolia’s actions. More actions continued to be taken as internet giants Baidu and Weibo censored search words associated with Huobi, OKEx, and Binance.
Bitcoin Gains Endorsement From Different Countries
Following China’s total ban on Bitcoin, some good news about the crypto continue to flock the crypto space from different nations. The most notable is El Salvador, which became the first country to accept Bitcoin as a legal tender. While it will take 90 days to implement the law, Wikipedia has already listed BTC as one of El Salvador’s official currencies
The Central American nation reported that her government would grant citizenship to individuals who invest at least three BTC in its economy. Furthermore, Paraguay reportedly said that it would start working on a project that will involve Bitcoin and PayPal.
How many other countries are ready to adopt Bitcoin as a legal tender?