The Chinese Ministry of Public Security has apprehended 1,100 people in its latest bust pertaining to the illicit use of cryptocurrencies.
According to the ministry, the culprits were arrested in relation to a money-laundering operation involving cryptocurrencies.
Money launderers charged between 1.5% and 5% to convert criminal proceeds to cryptocurrencies using an exchange. No details about the amounts laundered were provided in the Ministry’s WeChat statement. Chinese authorities said that the proceeds were made through internet and telephone scams.
The crackdown is a continuation of China’s zero-tolerance policy towards crypto. The country has suspended bitcoin mining and advised provinces to step up their efforts against cryptocurrency operations of any kind.
The government has been backed by some of the most prominent institutions in the country, including the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China.
All three industry bodies sided with the government’s official stance, which argues that the rapid fluctuations in the value of cryptocurrencies pose a threat to the financial security of citizens. China’s provinces have already started enforcing the government’s tougher stance on anything cryptocurrency-related.
The citizens of Inner Mongolia may no longer mine bitcoin. The lack of support for bitcoin mining has led to an exodus of Chinese operations, with the “mining difficulty” for the currency decreasing by 16% at the end of May.