Chinese police have conducted a series of raids in an effort to curb illegal foreign exchange trading involving billions of dollars in cryptocurrencies, Bloomberg reported. The alleged cases include a separate cryptocurrency case flagged in May. The so-called crackdowns covered Beijing, Jilin province in the northeast, and Chengdu in the southwest, and were flagged by municipal authorities and state media. The signs suggest that despite Beijing banning cryptocurrency trading more than two years ago, Chinese demand still plays a major role in the digital asset market.
Chainalysis, which reviewed blockchain, estimated that approximately $86 billion in cryptocurrency flowed into China in the 12 months ending June 2023, which, while down from pre-ban levels, is still significant globally. According to a report published by the Chengdu Public Security Bureau via WeChat, cases involving transfers of 13.8 billion yuan have been made public. According to the article, 193 people have been arrested for such activity since the beginning of 2021.
According to a WeChat post from the Panshi City Public Security Bureau in Jilin Province, the gang accused of illegally transferring 2 billion yuan obtained digital tokens through over-the-counter transactions to help convert yuan into won. Beijing police claimed they had busted 11 underground gangs across the country, some of which used virtual currencies to cover up their activities, according to a Xinhua report reprinted by state broadcaster CCTV.
