MORE than 1,100 people were arrested in China after Beijing cracked down on Bitcoin operations in the country.
China’s Ministry of Public Security alleged the suspects used digital assets to launder profits from internet and phone fraud.
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More than 1,100 people were arrested as part of a nationwide police operationPhoto credit: Reuters
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Bitcoin’s value has almost halved since April when it traded at $ 63,000. On Thursday it was worth $ 37,000Image credit: AFP
In a dive over 23 provinces, regions and cities, Chinese law enforcement agencies on Wednesday rounded up more than 170 criminal networks who, according to the authorities, hired “coin makers” to open crypto accounts after their bank accounts were confiscated during a police operation.
The arrests have seen the value of Bitcoin drop on fears that Beijing may impose new restrictions on crypto trading.
From its high of more than $ 63,000 in April, the cyber currency is now trading at around $ 37,000, according to Thursday’s figures.
This happens amid a crackdown on Bitcoin mining and the “trading behavior” of the Chinese Politburo.
“The highly illegal income attracts large numbers of people to participate and causes serious social damage,” the ministry said.
In May, a parliamentary committee said crackdown was needed to “resolutely prevent individual risks from being transferred to the social sphere”.
The arrests have also raised doubts that the currency is “nowhere to be found”.
Bitcoin’s price fell nearly 12 percent on Tuesday as U.S. authorities announced they were able to reclaim most of the Bitcoin ransom that Colonial Pipeline paid to hacking group DarkSide in May.
Webull trading platform CEO Anthony Denier told the New York Post on Tuesday: “Criminals have used Bitcoin because governments are said to be unable to get hold of it.
“If governments can reclaim it, it damages its attractiveness.”
Chinese authorities claim criminals used Bitcoin to launder revenue from expensive phone and internet fraud.
The move is part of a wider crackdown that has seen three industry organizations banning crypto-related payments so far.
In late May, the government in the coal-rich Inner Mongolia region published a series of rules that inhibit cryptocurrency trading.
Authorities in western Qinghai Province have also announced a ban on cryptocurrency mining, state news agency Xinhua Finance reported on Thursday.
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Cryptocurrency is a secure form of digital money that is anonymous in many cases. They use encryption to secure transactions and can be done with minimal processing fees.
Bitcoin is the world’s first decentralized digital currency – that is, there is no central bank or administrator.
The defendants are accused of money laundering.
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