China arrests 1,100 people for crypto money laundering
From the country bitcoin Mines power nearly 80 percent of the global cryptocurrency trade, although trading in China is prohibited.
Officials have begun to pay attention to cryptocurrency miners to avoid speculation and root out money laundering.
Chinese police arrested a network of 1,100 people involved in money laundering by buying cryptocurrencies, the Minister of Public Security it said in a statement dated Wednesday.
The launderers charged customers a commission to convert the illegal proceeds into virtual currencies through crypto exchanges, the ministry said, without specifying the amount of money involved.
China banned cryptocurrency trading in 2019 and is increasingly tightening restrictions on bitcoin mining.
In April, the northern region of Inner Mongolia shut down all of its cryptocurrency mines, claiming they did not meet annual energy consumption targets.
The region accounted for eight percent of the computing power required to run the global blockchain, a set of online ledgers for recording bitcoin transactions.
That’s higher than the amount of computing power dedicated to blockchain in the entire USA.
The northwestern province of Qinghai announced a similar ban on cryptocurrency mining on Wednesday, but no data is available on the size of operations in the region.
Bitcoin values fell in May due to a warning from Beijing investors against speculative cryptocurrency trading.
China is in the midst of extensive regulatory crackdown on its fintech sector, whose major players have been hit with heavy fines after being found guilty of monopolistic practices.