March 28, 2024

Chinese police freeze over-the-counter traders bank accounts

Chinese police freeze over-the-counter traders bank accounts

Chinese Police Have Frozen Thousands Of Bank Accounts Of Crypto And Fiat Assets, Claiming They Areare related to 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 seized cryptocurrency accounts have ever faced 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 have been illegal since 2017.With the growing number of cryptocurrency transactions, police are improving their knowledge and analytical tools to monitor transactions on the blockchain. 

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