January 27, 2022

Chinese police freeze over-the-counter traders bank accounts

Chinese police freeze over-the-counter traders bank accounts

Chinese police froze thousands of bank accounts of cryptocurrency and fiat assets, claiming that they associated with illegal activities.

Chinese accounts were frozen last weekcrypto traders and over-the-counter market makers. Police said the transactions were used to launder illegal proceeds, including from cryptocurrency transactions.

According to a CoinDesk report, Sun Xiaosiao, a formerAn employee of the Chinese startup-crypto-wallet Bixin, now the head of the over-the-counter crypto platform, announced the freezing of his bank accounts in the Weibo social networking application known as Chinese Twitter. At the same time, he noted that this is not a personal situation, and the investigation of the police in the Guangdong region affected thousands of users.

None of the owners of the arrested cryptocurrency accounts have ever come across any charges.

In the past, the police had a practice of blockingaccounts through which they tried to convert cryptocurrency into Chinese yuan, considering the fiat received as “dirty” means. Now there is a possibility that as a result of a police investigation, these funds can be identified as related to the laundering of money obtained illegally.

Sun notes that the tendency to usethe blockchain for transferring high-risk capital in the country is only growing. At the same time, before, bitcoin was popular for such transactions, now the most popular currency is the stablecoin Tether (USDT).

Cryptocurrency transactions in China are consideredillegal since 2017. In response to the growing number of cryptocurrency transactions, the police will improve their knowledge and analytical tools for monitoring transactions on the blockchain.

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