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China's Crypto Crackdown Shakes: Billions of Illegal Bitcoin (BTC) Transactions Revealed.
Recent developments in #ChinaDrama show that cryptocurrencies continue to be used despite the government's current ban. Many raids by Chinese police have revealed the use of cryptocurrencies for illegal transactions worth billions of dollars.
A #Bloomberg report revealed that in May, police in China uncovered an underground bank linked to illegal transfers worth 13.8 billion yuan (~$1.9 billion). Authorities detected several illegal currency exchanges involving unauthorized conversions worth nearly 2 billion yuan and transactions worth over 1 billion yuan.
In contrast, #Chinese citizens are still thought to be interested in digital assets. Many people are using crypto as an alternative investment tool in an environment of falling real estate prices, while others are using crypto as a channel to bypass foreign transfer limits.
Chengyi Ong, head of #APAC policy at Chainalysis Inc., stated in a statement that there is still a significant amount of crypto activity going on in China. According to Ong, this may be caused by not strictly enforcing the ban. Still, the decentralized and peer-to-peer nature of crypto activities may be one of the contributing factors.
Recent discoveries by Chinese authorities highlight the difficulties of enforcing a nationwide crypto ban. Despite government efforts, significant crypto activity continues, driven by underground banks and illegal exchanges. The massive influx of crypto into China demonstrates the continued interest and participation of Chinese citizens in digital assets. Going forward, the effectiveness of the ban will likely depend on implementing stricter enforcement and addressing the root causes of crypto use.
