Crypto crimes surging in China amid crypto ban
Records showed that bad actors are still using crypto assets to facilitate illicit activities in China, despite the ban on crypto being fully imposed by the Chinese government in the country.
In June 2021, China started to Kick out crypto from China and that ended in a huge downfall for this crypto industry. Besides all these things, the crypto industry again grabbed the old momentum and surged with rapid pumps.
The reason behind the Crypto ban by China was fully dedicated to stopping illicit activities because of the anonymous nature of crypto assets and the second thing was to fight against the electric power needs.
Zhongke Liana, a blockchain data tracker Chinese firm, noted that the number of crypto-related crimes that took place in 2020 was 5,170. While it was 3,474 in 2019.
This firm noted that after the continuous step-by-step ban by China from June to September, crypto-related crimes are still surging. In 2021, total crypto-related crimes were 744.
In all these cases, around 48.52% of cases were involved with the pyramid scheme. 27.82% were associated with direct fraud. And 11.96% were related to online games.
Total 47.54% of crypto-related crimes in 2021 were using TRC20 USDT. While 30.96% were associated with USDT on ERC-20. And 10.34% USDT on the Bitcoin network.
Does the China decision to ban crypto working?
No doubt that the reasons provided by Chinese government authorities behind the ban of crypto trading and mining were collinear. But in actual reality, this decision of China seems to have failed.
Because according to available reports, bad actors are still involved in the illegal use of crypto assets. And these things are going to be a big challenge because China was planning to bring restrictions on the bad actors, not on good actors.
However, the majority of the reports claimed that China’s ban on Crypto was exhibited in the selfishness of China to make the roll-out of Chinese CBDCs successful.
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