China Against Crypto Money Laundering – Expectations
In its latest Financial Stability Report, the People’s Bank of China announced to the public the successful completion of its crackdown on cryptocurrencies.
Zhou Xiaochuan, the former governor of China’s central bank, clarified after publishing the major bank report that traditional regulatory methods are insufficient to deal with illegal actions, including money laundering.
Xiaochuan intends to take the government’s initiative to take intensive measures regarding money laundering and illegal activities.
Last June, the Chinese government arrested more than 1,100 money laundering suspects using cryptocurrencies.
However, cryptocurrency-related illegalities in China used to be so common that in 2020 the country took one of the top places in terms of money laundering.
According to data released by Chainalysis, Darknet sellers mostly pay through China-based cryptocurrency services.
The former governor also noted that the government needs to use modern technologies to manage cryptocurrency better. While the central bank explains that it already controls cryptocurrencies, it is clear that this is not a guarantee and that cryptocurrencies can fall from power at any time.
Cryptocurrencies are so risky and at the same time innovative that they have become one of the main tools used for crimes today. The government, despite large-scale efforts, finds it difficult to stop the illegal operation forever.
In addition, the government is not expecting any major announcements by the end of the year other than these problems.
It seems that the government was already confident in the success of the law enforcement actions and the latest achievements. Many are now talking about the fact that in the last few months, the Chinese government has stopped crypto mining operations, which has led to a “mass exodus” of large operators.
Over the past month, Chinese courts have ruled that there is intolerance to cryptocurrencies. It turns out that cryptocurrency has no protection from the law. At the same time, it was reported that six Chinese nationals were arrested. They face charges for illegal transactions because the process exceeded the transfer limit by Chinese exchange. They face up to 2-4 years in prison.
At the same time, the nation is trying to activate its digital yuan. While experts have discussed the benefits of digital currency for China’s central bank retailers, concerns over supervision remain.
Regulatory controls on DeFi and other cryptocurrencies are also tightening.
Meanwhile, the BTC hashrate recovered after the Chinese attack, which strongly impacted the overall background.
The trading market is evolving daily, and many new investors or companies are adding to it. Not surprisingly, the larger the scale, the greater the likelihood of specific errors occurring. The risks are normal.
It is good when the state takes responsibility for money laundering in cryptocurrency trading. However, each citizen or company, in turn, must take care of both their income and the cryptocurrency business and act only within the law.
Mistakes in the cryptocurrency business are pretty standard; the number of fraud cases is not reduced; however, thanks to the trusted companies or brokers that carry out their activities within the law, it should be noted. We can hope that the overall picture will improve dramatically.
- Trading Instrument
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