China News; He said he had arrested more than a thousand people for using the profits to buy cryptocurrencies.
The country’s bitcoin mines provide about 80 percent of global trade in cryptocurrencies, although trading is prohibited in China. Authorities began to strictly monitor cryptocurrency miners to prevent speculation and eliminate money laundering.
The ministry of public security said on Wednesday that Chinese police had cracked down on a 1,100-person network involved in money laundering by purchasing cryptocurrencies. Without specifying the amount of money in question, the ministry said launderers received commissions from customers for converting illegal proceeds into virtual currencies via crypto exchanges.
China banned cryptocurrency trading in 2019
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 cryptocurrency mines, claiming they could not meet their annual energy consumption demand.
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. This is higher than the amount of computing power devoted to blockchain in the entire United States. The northwestern province of Qinghai announced a similar ban on cryptocurrency mining on Wednesday, but there is no data on the extent of operations in the region.
Bitcoin values plummeted in May after a warning from Beijing to investors against speculative trading in cryptocurrencies. China is in the midst of wide-ranging regulatory crackdown on its fintech industry, with its biggest players facing huge fines after being found guilty of monopolistic practices.