China arrests 1,100 people for crypto money laundering
04:47, 10 June 2021
Chinese authorities have arrested more than a thousand people on charges of using cryptocurrencies to launder criminal proceeds.
China's Ministry of Public Security said in a statement that police had arrested more than 1,100 suspects on Wednesday as part of a nationwide crackdown on money laundering.
The arrests were made during the Ministry of Public Security's fifth round of Operation Card Breaking, which looks to end the using of cryptocurrencies for use in money laundering and telecom fraud, CoinDesk reported.
Telecom fraud
Telecom fraud involves the use of fake or stolen SIM cards to launder cash through traditional banking channels.
China’s chief administrative body, the State Council, has called for a crackdown on of telecom fraud since late 2020
So far Chinese police have arrested more than 311,000 people and eliminated 15,000 criminal organisations, according to the Ministry of Public Security.
Chinese authorities have recently been taking a tough line on cryptocurrencies and also on Wednesday Qinghai province became the third administrative unit to ban crypto mining, citing environmental concerns.
Earlier this week crypto accounts were banned on Weibo - the Chinese version of Twitter.
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Global sell-off
Last month China sparked a global sell-off and a plunge in bitcoin prices when it stopped banks and other financial services firms from allowing cryptocurrencies as payments or engaging in any other related services, including exchange transactions.