• In a crypto-money-laundering scandal, China has arrested over 1,000 people

  • Approximately 1,100 people have been arrested in China for attempting to launder criminal gains by purchasing cryptocurrency.

    The Chinese Ministry of Public Security announced on Wednesday that it has arrested roughly 1,100 people for money laundering using cryptocurrencies. The news was made via the Ministry’s official WeChat account, which is a Chinese social networking platform.

    Money launderers allegedly charged 1.5 percent to 5% commissions to transfer illegal gains to cryptocurrencies via cryptocurrency exchanges. The Ministry did not say how much money was laundered or which trading platforms were used in the process.

    According to the government body, the money was obtained through illegal telephone and Internet frauds.

    The announcement comes amid a greater crackdown in China on the cryptocurrency industry.

    The tense connection between China and cryptocurrency Since 2017, China has prohibited cryptocurrency trading; but, in recent weeks, the restriction has once again dominated headlines.

    The National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China all unanimously backed the government’s stance on cryptocurrency last month.

    “Recently, cryptocurrency values have surged and plunged, and speculative trading of cryptocurrencies has rebounded, putting people’s property at risk and disturbing the normal economic and financial order,” the three industry associations said in a statement.

    Trading in cryptocurrencies isn’t the only area of the crypto sector that has recently come under assault in China.

    China’s Qinghai Province issued a fresh restriction on Bitcoin mining and crypto mining in general earlier this week.

    According to a document released by the Qinghai Industry and Information Technology Department yesterday, all mining operations in the province must cease operations, and no new operations will be permitted.

    Following in the footsteps of Xinjiang and Inner Mongolia, Qinghai is the third Chinese province to prohibit crypto mining.

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