Government in China Arrests Thousands in Crackdown on Crypto Money Laundering

During the Third Session of the 14th National People’s Congress, Ying Yong, the Procurator-General of the Supreme People’s Procuratorate, presented a work report indicating that in 2024, nearly 3,032 individuals were prosecuted for crypto money laundering crimes as the UN explores solutions to address this threat.

China’s Crackdown on Crypto Money Laundering

According to Yong’s work report, a minimum of 3,032 people were implicated in crypto money laundering crimes in 2024.

How does crypto money laundering work?

Criminals conceal illicit funds by converting them into untraceable cryptocurrencies. They blend these cryptocurrencies with others to create a complex trail that is hard to follow. Subsequently, they rapidly transfer the money through multiple crypto addresses before either cashing it out under the guise of legitimate crypto transactions or using it to acquire high-value items.

China’s Action against Financial Fraud and Crimes

The report also reveals that in 2024, approximately 25,000 individuals were apprehended in China for financial fraud and criminal activities. This underscores the Chinese government’s determination to eradicate such threats from its financial landscape.

Additionally, the report indicates that 825 individuals were prosecuted for securities crimes including financial fraud and insider trading. It further mentions specific cases like the Evergrande Group and Zhongzhi Group, where individuals were implicated for financial irregularities. The collaboration between the China Securities Regulatory Commission and the procuratorate aims to cleanse the private equity sector.

Also Read: U.S. Releases Seized Chinese Crypto Mining Equipment Amid Trade War

Chinese Crypto Regulation Landscape: An Overview

China’s approach to cryptocurrencies leans towards prohibition rather than regulation. The country lacks a centralized crypto regulator, with various government bodies responsible for enforcing crypto restrictions. The People’s Bank of China plays a significant role in initiating China’s crackdown on cryptocurrencies, supported by agencies overseeing financial stability, cybersecurity, and law enforcement.

In conclusion, China’s stringent crackdown on financial crimes underscores its commitment to combatting illegal crypto transactions and financial fraud. The government’s resolute stance against crypto money laundering is highlighted by the large number of prosecutions.