China Claims That Cryptocurrency Is Being Used To Launder Drug Money.

On Thursday, the China Ministry of Public Security recognized cryptocurrency for the first time as a tool to launder and move money related to the narcotics trade.

According to the China Drug Crime Report 2021, police cleared 5,000 drug trafficking cases including online transactions last year, accounting for around 9.2% of all drug-related crimes.

The report said:

“The circulation of drug funds has expanded from online bank transfers to cryptocurrency and in-game currency,”

According to a Chinese media report, the Hangzhou Intermediate People’s Court issued a verdict in mid-2020 that a Chinese e-commerce platform executive used Bitcoin to acquire methamphetamine on the dark web in 2018.

According to a January study report, despite China’s cryptocurrency ban, 5,137 criminal cases involving cryptocurrency were reported in 2021.

The quantity of cryptocurrency utilized in money laundering activities surged by 30% year on year in 2021, according to a crypto money laundering report by Chainalysis.

The police investigation corresponds with China’s escalating anti-crypto rhetoric, which is promoting the use of its own central bank digital money (CBDC).

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Patrick

CoinCu News