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Highlights:

  • Police had busted over 170 said criminal groups involved in using cryptocurrencies to launder money by Wednesday afternoon.
  • Chinese authorities are stepping up their crackdown on cryptocurrency trading.
  • The Payment & Clearing Association of China said that the virtual currencies regarding crimes are increasing.

The Ministry of Public Security said that China’s police arrested more than 1,100 people suspected in cryptocurrencies related money laundering from Internet scams and telephone in a recent crackdown.

The arrests occurred amid Chinese authorities are stepping up their crackdown on cryptocurrency trading. The cabinet of China, the State Council vowed to clamp down on bitcoin trading and mining and 3 industry bodies last month banned crypto-related financial and payment services.

According to the public security ministry, police had busted over 170 said criminal groups involved in using cryptocurrencies to launder money by Wednesday afternoon. The ministry said that the criminal clients were charged a commission of 1.5% to 5% by the money launderers to convert illegal proceeds into virtual currencies via crypto exchanges.

On Wednesday, the Payment & Clearing Association of China said that the virtual currencies regarding crimes are increasing. In nature, cryptocurrencies are global, convenient, and anonymous, which is why cross-border money laundering, is becoming an important channel.

Already in gambling activities, cryptocurrencies have become a popular means of payment as nearly 13% of gambling sites support the use of virtual currencies, and the association said that for authorities, it is becoming more difficult to track the money due to blockchain technology.