The arrests came as Chinese authorities intensified crackdowns on cryptocurrency trading. Last month, three industry companies banned crypto-related financial and payment services. At the same time, the State Council, China’s cabinet took an oath to ban bitcoin mining and trade. June 10 at 12 noon (IST) Bitcoin prices in India 2.8.7 lakh.
As of Wednesday afternoon, police had uncovered more than 1,170 criminal gangs involved in using cryptocurrencies for black money, the Ministry of Public Security said.
The ministry said through its official WeChat account that money launderers took a commission of 1.5 percent to 5 percent from their criminal clients to convert virtual currency illegally through crypto exchanges.
The Payment and Clearing Association of China said on Wednesday that the number of crimes related to the use of virtual currency is on the rise. “Since cryptocurrencies are anonymous, convenient and global in nature, they have become an important channel for cross-border money laundering,” the association said in a statement.
Cryptocurrencies have already become a popular means of paying for illegal gambling activities. According to the association, about 13% of gambling sites support the use of virtual currency, making it more difficult for blockchain technology authorities to track funding.