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Chinese police arrest 1,100 people for money laundering with cryptocurrencies

Chinese officials have escalated a campaign against cryptocurrencies, arrested more than 1,100 people suspected of using digital assets to clean up fraudulent funds, and ordered the closure of a mine in one of the western states. ..

The Ministry of Public Security said in a statement that it had put together more than 170 criminal groups engaged in cryptocurrency trading for money laundering earned through telephone and online fraud in a raid across 23 states, regions and cities. The suspects said they repeatedly converted assets from one cryptocurrency to another in order to hide their footprints.

The ministry added that the illegal activity “caused serious social harm.”

The arrest promised last month that powerful Chinese super-regulators would “control Bitcoin mining and trading behavior” as part of a broader effort to prevent domestic financial risks and reduce energy consumption. It was done later. Regulatory crackdown concerns have contributed to the strong sellout of Bitcoin and other cryptocurrencies.

Bitcoin is still struggling to recover from its recent trading range. It traded close to $ 36,755.77 on Thursday, hitting a high of $ 64,802 per piece in mid-April.

Many supporters of cryptocurrencies have dismissed China’s recent warning as a repeat of its previous ban. However, there are signs that Chinese authorities are taking seriously to curb crypto-related activities in the wake of months of volatile trading and growing concerns about carbon dioxide emissions.

“China has always had a very strong stance on cryptocurrencies, said Naeem Aslam, chief market analyst at London-based brokerage firm AvaTrade.

In recent weeks, multiple cryptocurrency mining platforms have begun to block access to services via Internet addresses in mainland China.

On Thursday, internet searches for several major crypto exchanges, including Binance, Huobi and OKEx, were emptied in Baidu. Of a corporation

Weibo is a popular search engine and microblogging service like Twitter. Exchanges have been a popular option for people in mainland China to trade cryptocurrencies known as over-the-counter markets. Some Weibo users known for posting about cryptocurrencies were banned from their accounts last week.

The high desire for cryptocurrency mining, an energy-intensive process in which computers compete to solve complex mathematical puzzles and unlock fresh Bitcoin, goes against Beijing’s energy goals. Xi Jinping President, decided to replay the China as a champion of climate change, has set an ambitious goal of reducing coal consumption.

Local governments have recently stepped up their campaign against the mining industry. In late May, authorities in Inner Mongolia’s coal-rich region announced detailed draft rules for the project.

The government in western Qinghai has also announced a ban on cryptocurrency mining, state news agency Xinhua Finance reported Thursday. Authorities said they would investigate mining operations that are apparently performed as big data or supercomputing centers.

China is working to curb cryptocurrency miners, but others are asking them to open a courtroom. Nayib Bukele, President of El Salvador,

Said he directed on Wednesday A state-owned geothermal power company has planned to use cheap, renewable energy from the country’s volcanoes to provide facilities for Bitcoin mining. The announcement was made hours after a small country in Central America first made Bitcoin legal tender.

Joel Kluger, a strategist at cryptocurrency exchange LMAX Digital, said some of the pressure on Bitcoin from China’s actions could have been eased. The decentralization of cryptocurrency mining across more countries, leading to decentralization from the current concentration in China, is similar to the prospect of a more environmentally friendly energy source than coal used by some Chinese miners. , Boosted optimism.

“This is positive in that it forces us to spread mining more widely and shift the story to more environmentally friendly mining methods,” Kluger said.

Write to Elaine Yu (elaine.yu@wsj.com) and Caitlin Ostroff (caitlin.ostroff@wsj.com)

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Chinese police arrest 1,100 people for money laundering with cryptocurrencies

Source link Chinese police arrest 1,100 people for money laundering with cryptocurrencies

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