Crypto laundering. Image: Shutterstock
- China has arrested 1,100 people for laundering the proceeds of crime with cryptocurrency.
- The announcement was made by China's Ministry of Public Security.
On Wednesday, the Chinese Ministry of Public Security said that it has arrested about 1,100 individuals for laundering money through cryptocurrencies. The announcement was posted on the Ministrys official WeChat account, a social media app in China.
The money launderers allegedly charged a commission of 1.5% to 5% to convert criminal proceeds to cryptocurrencies using crypto exchanges. The Ministry did not provide details over how much money was laundered, nor which trading platforms were used.
The money earned came from illicit telephone and Internet scams, per the government body.
The news comes amid a broader crackdown on the crypto industry in China.
Chinas tenuous relationship with crypto
China has imposed a ban on cryptocurrency trading since 2017; however, in recent weeks, that ban has dominated headlines once again.
Last month, three of Chinas most prominent payment institutions—the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China—unanimously backed the governments stance on crypto.
Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of peoples property and disrupting the normal economic and financial order, the three industry bodies said in a statement.
Cryptocurrency trading is not the only aspect of the crypto industry thats come under fire in China recently, either.
According to a document issued by the Qinghai Industry and Information Technology Department yesterday, all mining businesses in the province must s ...
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