According to Reuters, China initiated combined national efforts to arrest more than 1,100 people suspected of committing crimes by illegally trading cryptocurrencies.
According to local media reports, the Public Security Ministry dispatched law enforcement forces across Beijing, Hebei, and Shanxi Provinces and 23 other locations on Wednesday afternoon. Over 170 criminal gangs were arrested utilizing cryptocurrency to launder money, according to police.
According to the ministry’s official Wechat account, money launderers (or coin farmers) paid roughly 1.5 percent to 5% from their criminal gang organization by acquiring and exchanging virtual currencies from unlawful capital via crypto exchanges.
According to China‘s Payment & Clearing Association, the number of crimes employing virtual currency is increasing. Cryptocurrencies have become an increasingly crucial avenue for cross-border money laundering, according to the organization, since they are anonymous, easy, and worldwide.
China recently imposed restrictions on crypto-related activity and transactions. Three Chinese regulatory bodies have stated that banks and financial organizations would no longer be allowed to provide crypto transaction services, citing the volatility of cryptocurrency as a severe threat to the social, economic, and financial order.