China’s crypto crackdown grows, with 1100 people behind bars for money laundering

• Police have leveled money-laundering allegations on over 1100 people, who were arrested yesterday.
• China isn’t the only country that has pushed back against crypto in recent times.
• Other than environmental reasons, money-laundering is one of the primary concerns against crypto operations.

China’s crackdown on crypto-related operations seems to be intensifying. The country’s Ministry of Public Security announced yesterday that over 1100 people have been arrested over suspicions of money laundering using
cryptocurrencies.

According to China’s public security ministry, the police had caught over 170 criminal groups that were laundering money via cryptocurrencies. The launderers
reportedly charged 1.5% to 5% commission for converting illegal cash into cryptocurrencies by using exchanges, said reports.

The timing of the arrests is critical, as they came less than three weeks after the country’s central bank announced a crackdown on cryptocurrency mining, exchanges, and more. Three industry bodies in China had also banned crypto-related services. In addition, the government in China’s Inner Mongolia region, which is a hub for crypto mining, had created a public helpline for citizens to report
crypto mining operations in the area too.
The arrests could convince some users who thought China’s crackdown on the industry won’t last. Last month’s crackdowns had led many to recall a similar ban that China had announced back in 2017. Since the country became one of the largest crypto mining countries despite such efforts, many said that this year’s moves may not amount to much either.

However, China’s 2021 crackdown isn’t a lone effort. It adds to what could be called a global pushback against the crypto industry that started over the past six months or so. The industry had seen a period of boom over the past year, especially after unprecedented lockdowns worldwide made the stock markets unstable.

India and crypto: The regulatory hurdles


Just like the Chinese government, India too is considering regulations around cryptocurrency. The country is expected to come up with a distinction between private and central bank digital currencies, and
may ban any digital currency that qualifies under its definition of private currencies. A bill for the same was expected in the Budget session of the Parliament that was held in March.

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