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SHANGHAI, June 10 (Reuters) – Chinese police have arrested more than 1,100 people on suspicion of using cryptocurrencies to launder illegal proceeds from phone and internet scams in a recent crackdown, the ministry said. of Public Security.
The arrests came as Chinese authorities step up their crackdown on the cryptocurrency trade. Last month, three industry bodies banned crypto-related financial and payment services, and the Chinese cabinet of State Council pledged to crack down on bitcoin mining and trading.
The Department of Public Safety said that as of Wednesday afternoon, police dismantled more than 170 criminal groups involved in using cryptocurrencies to launder money.
Money launderers charged their criminal clients a commission of 1.5% to 5% for converting illegal proceeds into virtual currencies through crypto exchanges, the ministry said through its official Wechat account.
The China Payment and Compensation Association said on Wednesday that the number of crimes involving the use of virtual currencies was on the rise.
Because cryptocurrencies are anonymous, convenient and global in nature, they have increasingly become an important channel for cross-border money laundering, the association said in a statement.
Cryptocurrencies have already become a popular payment method in illegal gambling activities. Nearly 13% of gambling sites support the use of virtual currencies, and blockchain technology has made it more difficult for authorities to track the money, according to the association. (Reporting by Samuel Shen in SHANGHAI and Alun John in HONG KONG; Editing by Simon Cameron-Moore)
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